M S Liberty General Insurance Limited Vs Additional Commissioner of CGST Delhi South Commissionerate & Anr. (Delhi High Court)
Summary: The Delhi High Court declined to exercise its extraordinary writ jurisdiction under Article 226 of the Constitution in a challenge by M S Liberty General Insurance Limited against an Order-in-Original dated 03.12.2025 passed by the Additional Commissioner of CGST, Delhi South Commissionerate. The Court held that the petitioner had an efficacious statutory remedy of appeal and that determination of the applicability of Section 6(2)(b) of the CGST Act required examination and comparison of the underlying factual record.
The petitioner had challenged the impugned order principally on the ground that proceedings initiated by the Central GST authorities for FY 2020-21 were barred by Section 6(2)(b), since proceedings concerning the same issue had earlier been initiated by the State GST authorities. The petitioner also challenged the invocation of the extended period of limitation under Section 74 of the CGST Act and sought, alternatively, directions concerning Form DRC-07 and its rectification applications.
The factual background showed that the Anti-Evasion Branch of the Central GST Department had issued summons to the petitioner on 07.11.2023 concerning an ITC mismatch between Form GSTR-3B and Form GSTR-9. The petitioner replied on 22.11.2023. Thereafter, the State GST authorities issued a Show Cause Notice dated 26.11.2024 for FY 2020-21 alleging excess availment of ITC of Rs.2,44,97,609/-. The petitioner replied to that notice on 21.01.2025, and the State proceedings were subsequently dropped by order dated 22.02.2025.
