M/S. Sikka Motors PVT LTD vs. Union Of INDIA & Anr.
Held
The Court held that the Show Cause Notice (SCN) dated 08.08.2024 was time-barred. The Petitioner's argument that the SCN was required to be issued by 31.05.2024, as per Section 73(2) of the CGST Act, 2017, read with CBIC Notification No. 56/2023, was accepted. The Court found the Respondents' defense of a technical glitch unconvincing. Firstly, the DRC list showed the SCN dated 29.05.2024 as 'awaiting GSTN confirmation' without a Common Reference Number (CRN), indicating it was not integrated with the common portal or communicated to the Petitioner. Secondly, the re-issuance on 08.08.2024 was an acknowledgment that the earlier notice was not effective. The Court stated that a notice remaining on an internal system without confirmation or CRN is not considered issued in the eyes of law, as issuance must be read with the mode of service under Section 169. Thirdly, the Respondents made no attempt to serve the SCN through alternative modes as provided under Section 169(1), despite being aware of the technical glitch. The Court concluded that administrative lapses cannot be visited upon the taxpayer or enlarge a statutory limitation. The ASMT-10 communication and personal hearings were deemed preliminary steps and not a substitute for a validly issued SCN. Therefore, the SCN and the consequential OIO were quashed.
Facts
The Petitioner, M/s. Sikka Motors Pvt Ltd, a Hyundai car dealership, is challenging a Show Cause Notice (SCN) dated 08.08.2024 and the consequential Order-in-Original (OIO) dated 23.08.2024. The Respondents alleged that the Petitioner availed ineligible Input Tax Credit (ITC) of Rs.10,57,392/- from suppliers whose registrations were cancelled retrospectively, and Rs.5,57,720/- from suppliers who failed to file GSTR-3B returns. Additionally, a late fee of Rs.1,03,100/- and interest of Rs.3,39,603/- were alleged. The Petitioner contends that the SCN is time-barred. The Respondents claim the SCN was generated on 30.05.2024 but re-uploaded on 08.08.2024 due to a technical glitch during system migration.
Key Issues
1. Whether the Show Cause Notice dated 08.08.2024, issued under Section 73 of the Central Goods and Services Tax Act, 2017, is time-barred, considering CBIC Notification No. 56/2023-central tax dated 28.12.2023? Petitioner's contention: The Petitioner argues that even with the extended limitation period under Notification No. 56/2023, the SCN should have been issued by 31.05.2024, as per Section 73(2) of the Act. Since it was served on 08.08.2024, it is time-barred. Respondents' contention: The Respondents argue that the SCN was generated on 30.05.2024 and uploaded on the AIO system. A technical glitch during migration to the GST BO portal necessitated its re-upload on 08.08.2024. They also rely on the ASMT-10 communication and personal hearing opportunities as evidence of compliance and Petitioner's failure to respond.
Sections Cited
Section 73, Section 61, Section 168A, Section 169
AI-generated summary — verify with the full judgment below
W.P.(C) 5076/2025 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI %
Judgment reserved on: 28.09.2026 Judgment pronounced on: 27.10.2026 Judgment uploaded on: 27.10.2026 # CNR No. DLHC010219872025 + W.P.(C) 5076/2025 M/S. SIKKA MOTORS PVT LTD
.....Petitioner Through: Mr. Siddarth Malhotra, Mr. Prerak Khurana and Ms. Ritika Goel, Advs.
versus
UNION OF INDIA & ANR.
....Respondents Through: Mr. Raghuvendra Shukla, SPC along with Mr. Anil Devlal, GP, Mr. Sampan, Mr. Manu Shukla, Ms. Nandita and Mr. Asra Chandra Advs. for R-1. Mr. Pranay Mohan Govil, SSC along with Mr. Devnit Chaudhuri and Ms. Tenzin Lhamo Bhutia, Advs. for R-2. CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE BHARAT PARASHAR J U D G M E N T ANIL KSHETARPAL, J.
By way of the present Petition, the Petitioner seeks issuance of an appropriate writ for quashing of the Show Cause Notice (‘SCN’) dated 08.08.2024 and the consequential
The judgment continues below.
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