Filatex India Ltd Vs Additional Commissioner Central Goods And Services Tax Central (Delhi High Court)
Delhi High Court has directed Filatex India Ltd. to pursue its challenge against an IGST demand before the appellate authority, citing the availability of an efficacious alternate remedy. The company had filed a petition under Articles 226 and 227 of the Constitution of India, seeking to quash an order dated January 31, 2025, which confirmed various IGST demands.
Filatex India’s primary contention, put forth by Senior Counsel Mr. Ashish Dholakia, was that the Show Cause Notice (SCN) issued on January 16, 2023, and the subsequent Order-in-Original passed by the Additional Commissioner, CGST, Delhi East, were “almost identically worded.” This, according to the petitioner, indicated a clear non-application of mind by the original authority.
The company had submitted a detailed reply to the SCN, arguing that it had no tax liability in terms of the Second Proviso to Rule 28 of the CGST Rules, read with CBIC Circular No. 199/11/2023-GST dated July 17, 2023. While the Order-in-Original mentioned this reply, the petitioner alleged it was not adequately addressed.
The High Court acknowledged that while writ jurisdiction could be exercised in certain cases, the present matter involved a “detailed factual analysis” regarding the applicability of the circular and Rule 28. Given that the impugned order is appealable under Section 107 of the Central Goods and Services Tax Act, 2017, the court declined to entertain the writ petition.
