Shashi Kumar Choudhary Vs Deputy Director Directorate General of GST Intelligence Delhi Zonal Unit & Anr. (Delhi High Court)
The Hon’ble Delhi High Court in Shashi Kumar Choudhary v. Deputy Director Directorate General of GST Intelligence Delhi Zonal Unit & another disposed the writ petition without considering the prayer of the petitioner for provisional release of the goods subject to furnishing a bank guarantee. Further, it was clarified that the impugned communication dated 6th May, 2025 would only be treated as a response to the letter dated 2nd May, 2025 and not an adjudication order and/or is not in the nature of an Order-in-Original passed upon duly hearing the parties and adjudicating the extent of tax, penalty etc.
The Learned Writ Court was of the view that the GST Department proceed to issue a Show Cause Notice in accordance with law. In case the Petitioner moves an application for provisional release the same is to be considered by the concerned Adjudicating Authority as well. The disputed question was that the imposition of penalty and taxes under Section 73 and 74 of CGST Act, 2017 presupposes issuance of a Show Cause Notice and in the absence thereof, no such demand can be raised.
