Rishi Enterprises Vs Additional Commissioner Central Tax Delhi North & Anr. (Delhi High Court)
Delay in uploading DRC-07 does not render GST order time-barred; service by email is valid and consolidated SCNs for multiple years permitted in fraudulent ITC cases: Delhi High Court
The Hon’ble Delhi High Court in Rishi Enterprises v. Additional Commissioner Central Tax Delhi North & Anr [W.P.(C) 4374/2025, order dated August 20, 2025] held that delay in uploading DRC-07 summary order does not invalidate GST adjudication proceedings, service of order via email is valid, and consolidated SCN spanning multiple years is permissible in cases involving fraudulent ITC availment.
Facts:
Rishi Enterprises (“the Petitioner”), engaged in trading, was one among 89 recipients issued notices arising from an investigation into fraudulent Availment of Input Tax Credit (ITC) linked to a non-existent supplier, M/s DS Enterprises. The investigation revealed that DS Enterprises was a bogus firm used to generate fake invoices for fraudulent ITC passing and availment amounting to Rs. 26.42 crores in total.
Additional Commissioner Central Tax Delhi North and others (“the Respondents”) issued a consolidated Show Cause Notice (SCN) and an adjudication order imposing tax and penalties totalling Rs. 51.87 lakhs on Rishi Enterprises, alleging wrongful availment of ITC between 2017 and 2023.
