Delhi HC Set Aside GST Demand for Using Total Turnover Instead of Actual Sales

IMS Mercantiles Ltd Vs Union of India & Anr. (Delhi High Court)  The petitioner, a firm engaged in the wholesale and retail business of lithium-ion and other batteries, filed a writ petition challenging a rectification order dated 24 July 2025 issued by the Additional Commissioner, Central Tax (Delhi West). The dispute arose after a search was conducted at the petitioner’s premises on 12 March 2021 based on alleged tax evasion. A Show Cause Notice dated 3 August 2024 alleged misdeclaration of the GST rate under HSN Code 8507 by applying 18% instead of 28%, resulting in short payment of ...