Deepak Kumar Vs State of Himachal Pradesh and Anr. (Himachal Pradesh High Court)
GST Demand and Delayed Appeal
The Himachal Pradesh High Court considered a petition challenging a DRC-07 final order dated 21.06.2025 passed under Section 74 of the GST Act, raising an additional demand of Rs.28,54,142/- against the petitioner.
The order was appealable under Section 107 of the GST Act, but the petitioner had not filed an appeal within the prescribed limitation period and approached the High Court belatedly. The petitioner stated that the tax liability was approximately Rs.12 lakh, with the remaining demand comprising interest and penalty.
The State submitted that the petitioner was liable for interest and penalty because of delayed payment and continuation of business after cancellation of the registration certificate. It stated that, considering the petitioner’s conduct, the penalty had been increased from 25% to 100%, supporting the total demand of Rs.28,54,142/-.
Appeal Permitted Subject to Deposit
Although the petitioner had failed to file the statutory appeal within limitation, the High Court permitted the petitioner to file an appeal under Section 107, subject to depositing 50% of the demanded amount, namely Rs.14,27,071/-, with the department or authority within 30 days. The deposit was made subject to the final outcome of the appeal.
