Technosys Integrated Solutions Pvt Ltd Vs Union of India (Delhi High Court)
The case concerns a writ petition filed by the petitioner, a company engaged in supply and installation of CCTV surveillance systems, challenging an Order-in-Original (OIO) dated 31.01.2025 passed under the Central Goods and Services Tax Act, 2017. The dispute arose from a GST audit conducted for the period FY 2017–18 to FY 2021–22, during which an Observation Memo dated 06.11.2023 indicated a tax liability of ₹49,52,923. The petitioner paid this amount during the audit without contest.
Subsequently, further proceedings were initiated, including issuance of Form DRC-01A and a Show Cause Notice (SCN) dated 09.04.2024 (with corrigendum dated 13.11.2024). The SCN proposed a substantial GST demand of ₹18,67,69,338 on the allegation of wrongful availment of a concessional 12% rate by treating supplies as works contract services, along with an additional demand of ₹1,30,00,000 for alleged non-payment of GST at 28%, and penalties under Sections 74 and 122(1)(xvii) of the CGST Act.
The petitioner filed a detailed reply asserting that it was engaged in works contract services relating to installation of CCTV systems and was eligible for the concessional 12% rate under Notification No. 11/2017-CT (Rate). It denied any suppression or misstatement and stated that earlier audit issues had been settled. After a personal hearing, the adjudicating authority passed the OIO confirming the entire demand and imposing penalties amounting to 200%.
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