Vallabh Textiles Vs Additional Commissioner Central Tax GST (Delhi High Court)
Delhi High Court held that mere rejection of the Petitioner’s request for cross-examination cannot be treated as a sufficient ground to bypass the statutorily prescribed appellate remedy and invoke the writ jurisdiction of this Court. Accordingly, writ disposed of.
Facts- The present petition has been filed by the Petitioner – Vallabh Textiles under Article 226 of the Constitution of India inter alia seeking setting aside of the orders dated 20thJanuary, 2025 and 29th January, 2025 and 1st February, 2025 as arbitrary and in violation of the provisions of the CGST Act, 2017 and Article 14, 19(1)(g), 265, 300A of the Constitution of India.
The present petition has been filed challenging the impugned order dated 29thJanuary, 2025 by which the Adjudicating Authority has confirmed the GST liability of the Petitioner to the tune of Rs. 7,13,05,165/- and has imposed an equivalent penalty. Penalties have also been imposed on Petitioner’s Directors.
Conclusion- Held that parties cannot, by praying for cross-examination, cannot convert Show-cause Notice proceedings into mini-trials. Persons seeking cross-examination ought to give specific reasons why cross-examination is needed in a particular situation and that too of specific witnesses. A blanket request to cross-examine all persons whose statements have been recorded by the Department, many of whom are typically employees, sellers, purchasers, or other persons connected to the entity under investigation, cannot be sustained. If a prayer for cross-examination is made, the Authority has to consider the same fairly and if the need is so felt in respect of a particular person, the same ought to be permitted. If not, the Authority can record the reasons and proceed in the case. Moreover, cross examination need not also be of all persons whose statements are recorded. It could be permitted by the Authority in case of some persons and not all.
