Lawgics – Judgment No. 197

Synopsis: Notification dated 11.03.2022 & 25.11.2024 confers power to Principal Commissioner Delhi North and Delhi West to issue notices under Section 73 & 74 of CGST Act, 2017.

Brief facts of the case:

The petitioner challenged a Show Cause Notice (SCN) dated 24.07.2024 and Order-in-Original dated 02.02.2025, issued for alleged fraudulent availment of Input Tax Credit (ITC) through fictitious and non existent firms. The case was based on an extensive investigation involving over 87 entities, and a criminal complaint was also filed under Section 132(1)(b) of the CGST Act, 2017. The petitioner participated in the proceedings and submitted a reply to the SCN but later objected to the jurisdiction of the adjudicating authority.

Contentions of the Petitioner:
The personal hearing was improper, and the order was passed without following due process. The authority that adjudicated the matter (CGST Commissionerate Delhi North) lacked jurisdiction. The correct authority was claimed to be CGST Delhi West. A Corrigendum, issued on 28.01.2025 (after the hearing), was alleged to be backdated and manipulated to rectify the jurisdiction issue.

Contentions of the Department:

The department cited two notifications: Notification dated 11.03.2022 granted jurisdiction to Principal Commissioner, Delhi North and Notification dated 25.11.2024 extended jurisdiction to both Delhi North and Delhi West. The department argued that the adjudicating authority had valid jurisdiction and that due opportunity of hearing was provided to the petitioner. Petitioner’s challenge to jurisdiction was unfounded, and their remedy lies in filing an appeal under Section 107 of the CGST Act.

Findings and Decision of the Court:
The High Court held that jurisdiction was validly established via the cited notifications. The petitioner was directed to file an appeal before the Appellate Authority under Section 107. The court clarified that if the appeal is filed within 30 days, along with mandatory pre-deposit, it shall not be dismissed on limitation grounds and shall be heard on merits.