Wizard Digitek Computers Pvt Ltd Vs Union of India & Ors. (Delhi High Court)
Delhi HC Examines Challenge to GST Adjudication Order
The Delhi High Court considered a writ petition challenging an Order-in-Original dated 29.12.2025 passed under Section 74 of the CGST Act. The order arose from a Show Cause Notice dated 28.06.2025 and confirmed GST demand of Rs.1,41,70,592/- for 2018-19 to 2023-24 and Rs.8,94,692/- for 2024-25, together with applicable interest and penalty.
The proceedings originated from an investigation in which a search was conducted at the residential and business premises of Mr. Kapil Arora, Proprietor of M/s Arora Communication. According to the Respondents, electronic data allegedly recovered from a seized laptop, loose papers and receipts (kachcha parchis), and statements recorded during the investigation disclosed unaccounted transactions involving the Petitioner.
Availability of Statutory Appeal Under Section 107
The Court noted that the impugned order was appealable under Section 107 of the CGST Act. The statutory appellate authority has powers to examine questions of fact and law, re-appreciate material, scrutinise adjudication findings and determine the legality and correctness of the challenged order.
The Court referred to the principle that availability of an alternative statutory remedy does not constitute an absolute bar to writ jurisdiction. It noted the recognised exceptions reiterated by the Supreme Court in <i>Assistant Commissioner of State Tax and Others v. Commercial Steel Limited</i>, namely breach of fundamental rights, violation of natural justice, excess of jurisdiction, or challenge to the vires of legislation or delegated legislation. However, mere assertion of such a ground does not automatically justify bypassing the statutory remedy.
