Delhi HC Dismisses Writ Against Rs. 7.13 Cr GST Demand, Advises Taxpayer to Pursue Appellate Remedy [Read Order]

The Delhi High Court dismissed a writ petition challenging a Rs. 7.13 crore GST demand, ruling that the taxpayer must pursue appellate remedies under the CGST Act rather than invoking writ jurisdiction.

The petitioner had challenged adjudication orders dated 20th January, 29th January, and 1st February 2025, alleging violation of principles of natural justice, primarily due to denial of cross-examination of certain witnesses whose statements were relied upon.

The petitioner contended that the proceedings were arbitrary, and that cross-examination was necessary to rebut the allegations of GST evasion.

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The Revenue argued that the denial of cross-examination was not fatal, as the evidence relied upon was largely documentary, corroborated by undisputed material. The Respondent counsel also argued that the proper remedy available to the petitioner was through appeal.

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The bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that the petitioner party failed to prove substantial prejudice caused due to the denial of cross examination then the order cannot be set aside.

The Court noted that the right to cross-examine is not absolute and can be declined when sufficient documentary evidence exists. The court relied on precedents for above principle including Telstar Travels Pvt. Ltd. and Sushil Aggarwal v. Principal Commissioner of Customs.

The Court also observed that show-cause notice proceedings should not be converted into mini-trials and that blanket requests for cross-examination without specific justification do not warrant acceptance.

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The court observed that the petitioner may approach appellate authority by way of appeal under section 107 of the Central Good and Service Tax Act.

The Court  directed the petitioner to file an appeal within 30 days before the Appellate Authority under Section 107 of the CGST Act, and directed that any appeal so filed would not be dismissed on grounds of limitation.

The writ petition was accordingly disposed of.

To Read the full text of the Order CLICK HERE

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