Raj Kumar Gupta Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court dismissed a writ petition filed by Raj Kumar Gupta under Article 226 of the Constitution, challenging a demand order dated 18th June, 2025, issued by the Directorate General of GST Intelligence (DGGI), Mumbai. The case revolves around clandestine manufacture and sale of pan masala at multiple premises linked to the petitioner. Raids conducted in 2016 at the petitioner’s factory and residence led to the seizure of various goods and cash totaling ₹70,00,000. The petitioner was taken into custody on 18th September, 2016, and later released on bail.
The GST Department issued several Show Cause Notices (SCNs) over the years, beginning with one dated 7th March, 2017, seeking justification for extending the period of limitation for issuing notices. Subsequent SCNs followed, including one dated 14th September, 2017, relating to seized cash, and another dated 8th June, 2020, regarding excise duty liability for manufacturing and selling pan masala at the Dabri premises in Delhi. The petitioner submitted replies intermittently, and statements of witnesses were recorded between 2019 and 2020. In 2024, adjudication of the matter was transferred to the Mumbai office.
A personal hearing was granted to the petitioner on 1st April, 2025. The petitioner sought permission on 3rd April, 2025, to cross-examine additional witnesses, contending that the impugned order was passed without affording this opportunity. The petitioner argued that this constituted a violation of natural justice principles.
