Facts of the Case: Sakshi Elecricals Polymers Engg Corpn challenged an order dated 26th August, 2024 passed by the Sales Tax Officer for FY 2019-20, arising from a Show Cause Notice dated 22nd May, 2024 issued under Section 73 of the CGST Act raising a demand of Rs. 20,00,436/-, to which the petitioner had filed a reply on 9th August, 2024 before the demand was confirmed. The petitioner also challenged a second Show Cause Notice dated 7th August, 2025 issued under Section 74 for the same financial year, and additionally assailed the vires of Notification Nos. 56/2023 and 9/2023 (Central and State Tax) extending limitation for passing orders under Section 73.

Issues Involved:

  1. Whether the validity of Notification Nos. 9/2023 and 56/2023, extending the time limit under Section 168A, should be adjudicated given the pending Supreme Court SLP on the issue.
  2. Whether the order dated 26.08.2024, passed after considering the petitioner's reply, warranted interference in writ jurisdiction.
  3. Whether the second Show Cause Notice dated 7th August, 2025, issued under Section 74 for FY 2019-20, was barred by limitation.

Petitioner's Arguments:

  • The impugned notifications extending the limitation period under Section 168A were issued without following the mandatory procedure of prior GST Council recommendation, rendering them invalid.
  • The Section 74 notice dated 7th August, 2025 for FY 2019-20 was issued beyond even the extended deadline available under Notification No. 56/2023, and was therefore time-barred on its own terms.

Respondent's Arguments:

  • The Department maintained that the reply dated 9th August, 2024 filed by the petitioner had been duly considered by the Adjudicating Authority before confirming the demand under the first Show Cause Notice.

Court Order / Findings:

  • Noting that the vires challenge to Notifications 9/2023 and 56/2023 was already pending before the Supreme Court in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax (SLP No. 4240/2025) and before this Court in the lead matter DJST Traders Pvt. Ltd., the Court left that constitutional question open, to abide by the outcome of those proceedings.
  • On facts concerning the first Show Cause Notice, since the petitioner's reply had been considered before the demand was confirmed, the Court declined to interfere under writ jurisdiction and instead permitted the petitioner to file a statutory appeal under Section 107 by 30th November, 2025 along with pre-deposit, directing that such appeal not be dismissed on limitation grounds.
  • As regards the second Show Cause Notice dated 7th August, 2025, the Court computed that under Notification No. 56/2023 the last date for issuing an SCN for FY 2019-20 was 31st August, 2024 — the notice having been issued nearly a year later, the Court held it was not tenable and liable to be quashed.

Important Clarification:

  • Even accepting the extended limitation granted by Notification No. 56/2023 for its full face value, a Show Cause Notice issued after the extended cut-off date (31st August, 2024 for FY 2019-20) is time-barred and liable to be quashed on that independent ground, regardless of how the larger vires challenge to the notification is ultimately decided by the Supreme Court.

Sections Involved:

  • Section 73 and Section 74, CGST Act, 2017 — demand and recovery provisions and their respective limitation periods.
  • Section 168A, CGST Act, 2017 — power to extend time limits on GST Council's recommendation.
  • Notification No. 56/2023-Central Tax dated 28.12.2023 — extension of time for FY 2018-19 and 2019-20.

Decision – In Favour of: Disposed of with directions, in part in favour of the Assessee — the time-barred Section 74 notice was quashed, while the Section 73 order challenge was relegated to the statutory appellate remedy.

Case Details: High Court of Delhi at New Delhi; W.P.(C) 15391/2025 & CM APPL. 63064/2025; Coram: Justice Prathiba M. Singh and Justice Shail Jain; Date of Decision: 8th October, 2025.

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