Varian Medical Systems International India Pvt. Ltd Vs Union of India & Ors (Delhi High Court)
The Delhi High Court heard two connected writ petitions filed by Varian Medical Systems International India Pvt. Ltd. arising from an audit initiated by the Department under Section 65 of the Central Goods and Services Tax (CGST) Act, 2017. The audit notice, dated 11 January 2024, covered the Financial Years 2017–18 to 2022–23. The Petitioner provided documents and clarifications in response to departmental notices through letters dated 22 February, 19 April, 6 September, and 24 September 2024. A draft audit report was prepared, and further clarifications were sought on 4 October 2024, to which the Petitioner replied on 11 October 2024.
Subsequently, a pre-Show Cause Notice (pre-SCN) was issued on 25 November 2024, allowing three days for response. However, before this period expired, the Department issued a Show Cause Notice (SCN) on 27 November 2024. The Petitioner challenged the SCN through W.P.(C) 1064/2025. While the petition was pending, the Department finalized and communicated the audit report on 13 February 2025, prompting another writ petition, W.P.(C) 13605/2025, challenging the final audit report.
The Petitioner’s counsel, Mr. Gajendra Maheshwari, raised two primary issues:
(i) The audit report was allegedly issued beyond the limitation period under Section 65 of the CGST Act.
(ii) The SCN was issued prematurely, violating the time allowed for reply to the pre-SCN.
