Armour Security India Limited Vs Union of India & Anr. (Delhi High Court)
The Delhi High Court considered a petition filed by Armour Security India Limited challenging the Show Cause Notice dated 30.09.2025 and the Order-in-Original dated 30.03.2026. The Petitioner initially challenged the Order-in-Original, inter alia, on the ground of violation of Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 (CGST Act), but its counsel stated that this ground would not be pressed at this stage.
The Petitioner sought to challenge proceedings under Sections 76 and 74 of the CGST Act concerning financial years 2017-18, 2018-19 and 2019-20. The Show Cause Notice alleged that the Petitioner had unlawfully availed Input Tax Credit (ITC) and consequently had not paid the tax due. The notice was described as detailed and elaborate and set out the case of the Department. The Assessing Authority subsequently passed the Order-in-Original dated 30.03.2026 after considering the Petitioner’s reply and granting an opportunity of hearing.
The Petitioner acknowledged the availability of an alternative statutory remedy of appeal under Section 107 of the CGST Act but contended that the issue raised concerned jurisdiction and therefore could not be examined by the Appellate Authority. It was also submitted that Section 76 does not prescribe any period for issuance of a notice and that the question of what constitutes a “reasonable period” could be interpreted only by the High Court and not by the Appellate Authority. Reliance was placed on the judgment of the Supreme Court in State of Punjab & Ors. v. Bhatinda District Cooperative Milk Producers Union Ltd., (2007) 11 SCC 363.
