Chetak Motors Pvt Ltd And Ors Vs Additional Commissioner (Delhi High Court)
The Delhi High Court, in the matter of Chetak Motors Pvt Ltd And Ors Vs Additional Commissioner, addressed a writ petition challenging a Show Cause Notice (SCN) issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petition was largely dismissed on the grounds of premature challenge, but the court intervened to safeguard the petitioner’s right to natural justice by directing the GST authority to furnish all Relied Upon Documents (RUDs).
Challenge to the Show Cause Notice
The petitioner, Chetak Motors, sought to quash the SCN dated June 24, 2025, on three main grounds:
1. Improper Invocation of Section 74: The petitioner argued that Section 74 of the CGST Act, which deals with cases involving fraud, willful misstatement, or suppression of facts, could not be invoked as these elements were absent. They contended that the dispute was merely interpretational or clerical, falling under the less stringent Section 73.
2. Pre-conceived Notion: An allegation was made that the GST authorities were proceeding with a pre-conceived notion, suggesting a lack of unbiased adjudication.
3. Non-supply of Relied Upon Documents (RUDs): The petitioner claimed the documents relied upon by the department were not provided, violating principles of natural justice.
Court’s Analysis and Holding
