Supra Enterprises Vs Assistant Commissioner Circle 6 Central Gst Audit 1 & Ors.(Delhi High Court)
Summary: The Delhi High Court considered a writ petition filed by M/S Supra Enterprises challenging proceedings arising from a Show Cause Notice dated 26.07.2024 issued under Section 74(1) of the Central Goods and Services Tax Act, 2017. During the pendency of the writ petition, the adjudication proceedings culminated in Order-in-Original No.62/AY/AC/NP/2024-25 dated 03.02.2025 passed by the Assistant Commissioner, CGST Division-Nehru Place, Delhi East Commissionerate. The Court noted that the Impugned Order was appealable under Section 107 of the CGST Act, which provides a complete statutory appellate mechanism.
The Petitioner is a partnership firm engaged in manufacture, export and distribution of flanged pipes and fittings and registered under the CGST Act. An audit under Section 65 was initiated through Form GST ADT-01 for July 2017 to March 2022. Audit memos dated 01.02.2024 and 26.03.2024 raised issues concerning ITC, RCM, supplies, exports and other transactions. Form GST ADT-02 dated 26.06.2024 raised audit objections involving approximately Rs.78,53,548/- in tax liability, excluding interest. Form GST DRC-01A dated 08.07.2024 intimated proposed liability under Section 74(5), followed by the SCN in Form GST DRC-01 dated 26.07.2024 proposing tax, interest and penalty.
