Facts of the Case

Global Tech Fab challenged a show cause notice dated 17.12.2023 and an assessment order dated 27.04.2024 for FY 2018-19 confirming a demand of Rs.7,97,290/-, and also a provisional bank attachment order dated 11.09.2025 under Section 83 of the CGST Act, 2017. The petition additionally challenged the vires of limitation-extension notifications issued under Section 168A, an issue already pending before the Supreme Court in SLP No.4240/2025 (HCC-SEW-MEIL-AAG JV). The Delhi High Court noted the petitioner had not challenged the assessment order for over 18 months, moving only after the bank attachment.

Issues Involved

  1. Whether the impugned notifications extending the limitation for adjudication under Section 168A of the CGST Act were validly issued.
  2. Whether the provisional bank attachment could survive once an appeal was filed with adequate pre-deposit under Section 107.

Petitioner's Arguments

  • The assessment order and the provisional attachment of its bank account were both bad in law, and the extension notifications under Section 168A were issued without proper prior GST Council recommendation, as multiple High Courts had already divergently held.
  • The petitioner had voluntarily deposited Rs.3,91,976/-, exceeding the statutory pre-deposit for an appeal, and should be permitted to appeal without further pre-deposit, with the attachment lifted.

Respondent's Arguments

  • The Department pointed out that the assessment order had been passed over 18 months earlier and was an appealable order, yet the petitioner raised no challenge until the bank attachment order was passed, suggesting the writ was reactive rather than substantive.

Court Order / Findings

  • The Court noted that the vires challenge to Notification Nos.9/2023 and 56/2023 (Central Tax) was the subject of a batch of petitions and was now pending before the Supreme Court, with divergent views among High Courts, and declined to decide it independently.
  • Since the petitioner's voluntary deposit already exceeded the mandatory pre-deposit under Section 107, the Court permitted an appeal without further pre-deposit and set aside the provisional attachment order, noting the appeal itself would operate as an automatic stay under Section 107(7).
  • The petitioner was directed to file the appeal by a fixed date, failing which the Department was free to act, with all rights and the notification-vires question left open pending the Supreme Court's decision.

Important Clarification

  • Filing of a GST appeal under Section 107 with the requisite pre-deposit automatically stays the demand under Section 107(7), justifying release of any provisional attachment made under Section 83 pending appeal.
  • Where the vires of limitation-extension notifications under Section 168A are pending before the Supreme Court, High Courts prefer relegating taxpayers to statutory remedies rather than ruling independently, keeping all rights open.

Sections Involved

  • Section 83, CGST Act, 2017 – provisional attachment of property to protect revenue during pending proceedings.
  • Section 168A, CGST Act, 2017 – power to extend time limits in special circumstances, subject to GST Council recommendation.
  • Section 107, CGST Act, 2017 – appellate remedy, with automatic stay of demand under sub-section (7) on filing appeal with pre-deposit.

Decision – In Favour of

Disposed of with directions, in part in favour of the assessee: the attachment was lifted and an appeal permitted without extra pre-deposit, while the larger notification-vires question was left open.

Case Details

Court: High Court of Delhi at New Delhi
Case No.: W.P.(C) 16309/2025 & CM APPLs.66741/2025, 69421/2025
Coram: Justice Prathiba M. Singh and Justice Madhu Jain
Date of Order: 07.11.2025

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