Sanjay Maheshwari vs. Union Of INDIA & Ors.

Facts

The Petitioner, Sanjay Maheshwari, filed two writ petitions before the Delhi High Court challenging orders passed under the Central Goods and Services Tax Act, 2017 (CGST Act). In W.P.(C) 5792/2025, the Petitioner sought to quash a Show Cause Notice (SCN) and an Order-in-Original (OIO) concerning the Financial Year 2017-2018, primarily arguing the OIO was time-barred under Section 74(9) of the CGST Act. The Respondents contended the OIO was issued within the limitation period under Section 74(10) and sent via email on 05.01.2025. In W.P.(C) 5832/2025, the Petitioner challenged an SCN and OIO, arguing the SCN was issued beyond the prescribed limitation period. The Respondents countered that the SCN was sent via email on 03.08.2025, within the limitation period ending 05.08.2025, despite being uploaded on the portal on 09.08.2024.

Held

The Court noted that in both writ petitions, an efficacious remedy of appeal was available to the Petitioner against the impugned Orders-in-Original. The rival contentions raised by both parties involved disputed questions of fact. The Court held that these disputed questions of fact were more appropriately examined by the Appellate Authority in the proceedings arising from such appeals. Consequently, the Court relegated the Petitioners to the remedy of appeal in both petitions. The Court further observed that if the Petitioners sought exclusion of the period during which the writ petitions remained pending, under Section 14 of the Limitation Act, 1963, the Appellate Authority would consider such request in accordance with law. The Court did not decide the merits of the limitation arguments.

Key Issues

1. Whether the Order-in-Original (OIO) dated 27.01.2025 in W.P.(C) 5792/2025, concerning Financial Year 2017-2018, was barred by limitation as provided under Section 74(9) of the CGST Act. The Petitioner argued it was time-barred, while the Respondents contended it was issued within the period prescribed by Section 74(10) of the CGST Act, citing dispatch via email on 05.01.2025. 2. Whether the Show Cause Notice (SCN) dated 25.07.2024 in W.P.(C) 5832/2025 was issued beyond the prescribed period of limitation. The Petitioner asserted it was time-barred, whereas the Respondents argued it was sent via email on 03.08.2025, prior to the expiry of the limitation period on 05.08.2025.