Deepak Sharma Vs Commissioner (Delhi High Court)
GST Demand Quashed Because Order Passed Beyond Five-Year Limitation Under Section 74(10); GST Order Set Aside Because Limitation Period Expired on FY 2017–18 Assessment; GST Demand Quashed Because Section 74(10) Time Bar Was Breached by Nearly One Year; GST Order Cancelled Because Authority Became Functus Officio After Limitation Expired
The Delhi High Court considered a writ petition challenging an Order-in-Original dated 30.12.2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017, which confirmed a tax demand of Rs. 27,13,098 for Financial Year 2017–2018. The petitioner, a registered GST assessee, was engaged in business under a proprietorship concern. The proceedings originated from a Show Cause Notice dated 22.09.2021 alleging wrongful availment of Input Tax Credit and non-compliance, including failure to respond to discrepancies communicated through ASMT-10 dated 14.01.2021.
The primary ground of challenge was that the impugned order was barred by limitation under Section 74(10) of the CGST Act. It was argued that the provision mandates that an order must be passed within five years from the due date of filing the annual return for the relevant financial year. For Financial Year 2017–2018, the due date for filing the annual return had been extended to 05.02.2020. Accordingly, the last permissible date for passing the order was 05.02.2025.
