Tag: Delhi HC

ArticleGST Article

Exoneration in Section 73 proceedings by State GST authorities would not ipso facto bar Central GST authorities from initiating proceedings under Section 74

byCA Bimal Jain

The Hon’ble Delhi High Court in PEI Industries dismissed the writ petition challenging the Order-in-Original dated March 30, 2026 passed under Section 74 of the CGST Act and held that Section 73 and Section 74 of the CGST Act operate in altogether different arenas, and merely because the assessee was exonerated in proceedings under Section 73 by the State GST authorities, the same would not, by itself, preclude the Central GST authorities from proceeding against the assessee under Section 74 of the CGST Act.

ArticleGST Article

Divergent Rulings on Consolidation of Multiple Financial Years in Single SCN

byCA Bimal Jain

The Hon’ble Delhi High Court in the case of M/s. Technosys Integrated Solutions Pvt Ltd held that consolidation of multiple financial years in a single Show Cause Notice (SCN) and adjudication order is permissible under Sections 73 and 74 of the CGST Act, even in cases not involving fraudulent Input Tax Credit, and declined interference in writ jurisdiction in view of the availability of an alternate appellate remedy.

ArticleGST Article

Failure of Chartered Accountant to Communicate Show Cause Notice Is Not a Ground for Equitable Interference Against Ex-Parte GST Demand Orders

byCA Bimal Jain

The Hon’ble Delhi High Court in the case of M/s Fone Zone NXT held that non-response to show cause notices on the ground that the Chartered Accountant failed to inform the assessee does not warrant exercise of equity or interference with ex-parte orders passed under Section 73 of the GST law, and that willingness to deposit part of the demand cannot justify deviation from the statutory procedure.

ArticleGST Article

GST liability on medicines/consumables supplied to in‑patients as part of exempt health services

byCA Bimal Jain

The Hon’ble Delhi High Court in the case of M/s. Escorts Heart Institute and Research Centre Limited held that where a notice under Section 76 of the CGST Act alleging that GST collected on medicines, consumables and devices billed at MRP to in‑patients has not been paid to Government raises important questions on taxability of such supplies when bundled with exempt health services

ArticleGST Article

Delhi High Court Holds Premature Issuance of SCN Violates Natural Justice under CGST Act

byCA Bimal Jain

The Hon’ble Delhi High Court in the case of Varian Medical Systems International India Pvt. Ltd. v. Union of India & Ors. [W.P.(C) 10642/2025 & 13605/2025, order dated October 28, 2025] held that the issuance of a Show Cause Notice (SCN) before the expiry of the reply period for the Pre-SCN violates principles of natural justice, and that audit commencement date under Section 65 of the CGST Act is the date when the taxpayer provides required documents, with audit conclusion and communication of findings within prescribed timelines.

ArticleGST Article

Non-effective portal notices, without a fair hearing or opportunity to reply, violate principles of natural justice

byCA Bimal Jain

The Hon’ble Delhi High Court in the case of Kurlon Retail Limited held that where a show cause notice and reminders are only uploaded on the “Additional Notices & Orders” tab of the GST portal, without proper notice or opportunity of hearing, the resulting ex-parte adjudication order violates principles of natural justice and must be set aside…