Rajesh Metals Vs Office of The Commissioner CGST (Delhi High Court)
The Delhi High Court heard a petition filed by Rajesh Metals challenging a show cause notice (SCN) dated 11 July 2024 and a subsequent order dated 3 February 2025 passed by the CGST Department. The SCN alleged fraudulent availment of input tax credit (ITC) through transactions with M/s Sun Corporation, claiming that the invoices were goods-less and the firms involved were non-existent.
Rajesh Metals submitted a detailed reply to the SCN on 16 December 2024, asserting that it had legitimately received goods through valid invoices and e-way bills. However, the Department’s order noted that the firm did not attend scheduled personal hearings on 17 December 2024, 7 January 2025, and 17 January 2025. The impugned order briefly mentioned receiving a response from the petitioner but did not substantively address the contents of the reply.
The petitioner argued that the Department failed to consider its reply before issuing the order, rendering the decision invalid. The Court observed that the reply appeared detailed but was not properly examined in the impugned order. The case pertained to alleged fraudulent ITC claims, an area in which the Court has previously held that writ jurisdiction under Article 226 should not generally be exercised, as such cases require factual examination through statutory procedures.
