Taxpayers named in common fake-ITC order against 44 entities relegated to appeal; Appellate Authority to consider condonation of delay liberally: Supreme Court

The Supreme Court agreed with the Delhi High Court that the statutory appeal is the appropriate remedy where disputed facts are involved, but directed that delay in filing the appeal be viewed liberally.

The Supreme Court has disposed of a special leave petition against a Delhi High Court order that declined to entertain a writ challenge to a common Order-in-Original passed against 44 entities for availing input tax credit on fake and bogus invoices, while directing the Appellate Authority to consider the condonation application liberally [Sharad Narula, Proprietor of M/s AS Enterprises & Ors. v. Union of India & Ors].

Before the High Court, a Bench of Justice Anil Kshetarpal and Justice Shail Jain noted that the common order recorded service of the show cause notice and an opportunity of personal hearing which the petitioners did not avail. Rejecting reliance on Jupiter Exports v. Commissioner of GST, the Court held that the matter involved disputed questions of fact and relegated the petitioners to the appeal under Section 107, with liberty to seek exclusion of the writ period under Section 14 of the Limitation Act.

A Bench of Justice P.S. Narasimha and Justice Alok Aradhe of the Supreme Court agreed with the High Court's approach, but added that the Appellate Authority may entertain the appeal by considering the application for condonation of delay liberally.

2026-juristway.com-3005-SC-GST & 2026-juristway.com-3006-HC(Delhi)-GST  |  Supreme Court of India; High Court of Delhi   |  13.10.2026; 20.07.2026