Bhagwati Electronics Vs Union of India & Ors. (Delhi High Court)
Summary: The Delhi High Court dismissed a batch of writ petitions challenging GST Orders-in-Original arising from a common Anti-Evasion investigation concerning M/s Arora Communication. The Petitioners challenged the proceedings on grounds including violation of natural justice, non-consideration of replies and documents, denial of effective hearing, and reliance on electronic data and handwritten kachcha parchis. They also disputed the evidentiary value of material allegedly recovered from a third party and contended that certain procedural requirements, including Section 75(4) of the CGST Act, had not been complied with. The Respondents raised the preliminary objection that the Orders-in-Original were appealable under Section 107 of the CGST Act and that the Petitioners had an efficacious statutory remedy. The Court held that the appellate authority could examine questions of fact and law, including appreciation of evidence, adequacy of material, personal hearing, electronic evidence, corroboration and correctness of adjudication findings. Relying on Assistant Commissioner of State Tax and Others Vs Commercial Steel Limited, the Court held that the present batch did not disclose circumstances warranting exercise of writ jurisdiction. The writ petitions challenging the Orders-in-Original were dismissed, with liberty to avail the statutory remedy under Section 107. W.P.(C.) No.8413/2026 seeking interim protection was also dismissed. The Court left all questions concerning admissibility, authenticity and evidentiary value of the electronic material, kachcha parchis, statements and other material open for consideration by the appellate authority.
Background of the Writ Petitions
The batch of Writ Petitions under Article 226 of the Constitution of India arose from a common investigation conducted by the Anti-Evasion Branch, CGST Delhi North Commissionerate.
