M/S Friends Alloys Vs the UOI and Others — GST and Indirect Tax | Himachal Pradesh HC (2026)

M/S Friends Alloys Vs the UOI and Others — GST and Indirect Tax | Himachal Pradesh HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of with direction to the petitioner to file an appeal under Section 107 of the CGST Act within 30 days; the Competent Authority/Appellate Authority to entertain the appeal (limitation not to be a bar, the petitioner having agitated the issue in the writ petition) and decide it on merits within eight weeks of filing, instead of rejecting it on the ground of limitation. Interim restraint sought against giving effect to Annexures P-3 and P-5 was not granted, the petition having been disposed of on relegation to the statutory appeal.

Issue for consideration

Whether the writ petition against the Order-in-Original in DRC-07 dated 10.01.2025 passed under Section 74 of the CGST Act (and its summary dated 03.02.2025) should be entertained by the High Court, or whether the petitioner should be relegated to the statutory remedy of appeal under Section 107 of the CGST Act.

Court's answer

Since Section 107 of the CGST Act provides the statutory remedy of appeal against an order passed under Section 74 of the CGST Act, the petitioner was directed to avail the appropriate statutory remedy by filing an appeal before the Competent Authority/Appellate Authority.

Ratio / Principle

It was clarified that, as the petitioner had been agitating the issue in the present petition, limitation shall not come in the way of filing the appeal before the Competent Authority for deciding the matter on merits.

Key takeaways

The petitioner was directed to file the appropriate appeal within 30 days from the date of the order, and the same was to be entertained by the Competent Authority/Appellate Authority and decided on merits.ratio¶¶20
The appeal was not to be rejected on the ground of limitation and was to be decided on merits within eight weeks from the date of filing of the appeal.ratio¶¶23

Detailed headnote1 paragraphs

GST – Writ petition under Article 226 jurisdiction of the High Court of Himachal Pradesh against Order-in-Original in DRC-07 dated 10.01.2025 (Annexure P-3) passed by the Additional Commissioner, Common Adjudicating Authority, CGST Commissionerate, Chandigarh under Section 74 of the Central Goods and Services Tax Act, 2017, and its summary communicated vide Form GST DRC-07 dated 03.02.2025 (Annexure P-5) – Held, Section 107 of the CGST Act provides the statutory remedy of appeal against an order passed under Section 74; petitioner relegated to the appellate remedy – Petition disposed of directing petitioner to file appeal within 30 days – Appellate Authority to entertain the appeal notwithstanding limitation (petitioner having agitated the issue in the writ petition) and decide it on merits within eight weeks of filing, instead of rejecting it on limitation.

2026:HHC:27649

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

CWP No.4997 of 2025 Date of decision: 08.07.2026

M/s Friends Alloys. ...Petitioner.

Versus Union of India & Ors. …Respondents. Coram Hon’ble Mr. Justice Vivek Singh Thakur, Judge. Hon’ble Mr. Justice Ranjan Sharma, Judge. Whether approved for reporting?¹

For the petitioner : Mr. Ajay Vaidya, Advocate. For the respondents : None for respondent No.1. : Mr. Anup Rattan, Advocate General with Mr. Sushant Keprate, Additional Advocate General, for respondents No.2 & 3-State.

: Mr. Vijay Kumar Arora, Senior Advocate with Mr. Hitansh Raj, Mr. Gaurav Kumar and Ms. Avantika Bhandari, Advocates, for respondents No.4 & 5.

Vivek Singh Thakur, Judge

Petitioner has approached this Court seeking following

substantial relief(s):-

“(i) That the impugned orders as contained in Annexure P-3 & P- 5 may kindly be Quashed and set aside being without Jurisdiction, Time barred, arbitrary, illegal and without sanction of law;

(ii) That pending the hearing and final disposal of the petition, this Hon'ble Court be pleased to restrain the Respondent, its employees, agents, representative and any one acting on

1 Whether the reporters of the local papers may be allowed to see the Judgment? Yes

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behalf of the Respondents, in any manner from giving effect to the (Ann P-3 and P-5) in any manner.”

2. Order-in-Original in DRC-07 dated 10.01.2025 (Annexure

P-3) is an order passed by Additional Commissioner, Common Adjudicating Authority, CGST Commissionerate, Chandigarh under Section 74 of Central Goods and Services Tax Act, 2017 (in short ‘ CGST Act ’). Summary of the order, Form GST DRC-07 dated 03.02.2025 (Annexure P-5) is a communication, whereby order dated 10.01.2025 (Annexure P-3) has been intimated to the petitioner. There is no other prayer, except assailing aforesaid order dated 10.01.2025 (Annexure P-3) passed under Section 74 of CGST Act and Summary of order communicated vide letter dated 03.02.2025 (Annexure P-5).

Admittedly, Section 107 of CGST Act, provides statutory remedy of appeal for assailing order passed under Section 74 of CGST Act. Therefore, petitioner is directed to avail appropriate statutory remedy by filing appropriate appeal before Competent Authority/Appellate Authority. It is clarified that, as the petitioner was agitating the issue in the present petition, limitation shall not come in the way of filing the appeal before the Competent Authority for deciding the matter on merits.

Accordingly, petitioner is directed to file appropriate appeal within 30 days from today, and the same shall be entertained by the Competent Authority/Appellate Authority and decided on merits instead

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of rejecting the same on the ground of limitation, within eight weeks from the date of filing of the appeal.

Petition is disposed of in aforesaid terms along with

pending applications, if any.

(Vivek Singh Thakur) Judge

(Ranjan Sharma) Judge

8^th July, 2026

(Pardeep)