PHX Electronics Pvt. Ltd. Vs Commissioner CGST And Central Excise (Delhi High Court)
The petition was heard by the Delhi High Court through hybrid mode. The petitioner filed the writ petition under Article 226 of the Constitution of India challenging a Show Cause Notice (SCN) dated 18 March 2019 issued under Section 130 of the Central Goods and Services Tax Act, 2017 (CGST Act). The SCN proposed confiscation of excess stock allegedly found during a search conducted by the Directorate General of Goods and Services Tax Intelligence (DGGI).
The background of the case was that DGGI conducted a search at the petitioner’s business premises and seized televisions and motherboards on the ground that the physical stock exceeded the recorded stock. Based on this, the impugned SCN proposed confiscation of the seized goods, valuing ₹1,34,43,410.
The petitioner contended that the SCN was made answerable to the Assistant Commissioner of the Laxmi Nagar Division. However, by a letter dated 9 May 2019, the Laxmi Nagar Division stated that the matter actually fell within the jurisdiction of the Gandhi Nagar Division. The petitioner had not filed any reply to the SCN up to that point.
On the previous hearing date, 12 December 2025, the Court directed the respondent’s counsel to seek instructions. Pursuant to this direction, counsel for the Department submitted that the Laxmi Nagar Division was willing to adjudicate the SCN in a time-bound manner. Counsel for the petitioner also expressed readiness to file a reply, provided that clear time-bound directions were issued, particularly because the seized goods were electronic items that risked becoming outdated with the passage of time.
