SKG Metal Trading Vs Commissioner Central Goods And Services Tax (Delhi High Court)
The Delhi High Court considered a writ petition challenging Order-in-Original dated 10.12.2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act), read with the corresponding provisions of the Delhi Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, whereby a penalty of Rs.2,39,30,100, equivalent to the input tax credit alleged to have been wrongly passed on, was confirmed against the petitioner. The Court noted that the impugned order was appealable under Section 107 of the CGST Act and reiterated the general principle that where a statute provides a comprehensive appellate mechanism, the High Court ordinarily declines to exercise its writ jurisdiction under Article 226 of the Constitution.
The petitioner submitted that the order had been passed in violation of the principles of natural justice as neither the Show Cause Notice dated 03.08.2024 nor the notices of personal hearing were served. It was contended that the business had ceased operations in 2021, an application for cancellation of GST registration had been filed on 02.04.2021, and the respondent should have adopted alternative modes of service under Section 169 of the CGST Act, including service by publication or at the residential addresses of the partners. The petitioner also relied upon Seagull Maritime Agencies Pvt. Ltd. v. Union of India & Ors. in support of remand on the ground of denial of an effective hearing.
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