HD Associates Vs Union of India (Gauhati High Court)
Summary: The Gauhati High Court considered a writ petition challenging a demand-cum-show-cause notice dated 14.08.2025 issued by the Assistant Director, DGGI, Guwahati Zonal Unit, for financial years 2021-22 to 2024-25, together with the search and seizure order dated 01.02.2024 in FORM GST INS-02 and consequential actions. The petitioner, a partnership firm carrying on business as “Detailing Bull”, challenged the search principally on the grounds of absence of valid authorization and requisite reasons to believe under section 67, non-compliance with Document Identification Number requirements, failure to undertake scrutiny under section 61 before initiating demand proceedings, impermissible consolidation of financial years, and alleged incompatibility between sections 74/74A and 122 in view of section 75(13).
The notice alleged misdeclaration or suppression of taxable value of Rs. 3,42,61,665 involving GST of Rs. 61,67,100 for financial years 2021-22 to 2023-24. Demand was proposed under section 74(1), while section 74A(1) was invoked for financial year 2024-25, with interest and penalties also proposed, including penalties under section 122. The notice also took into account payment of Rs. 3,00,000 made by the petitioner through DRC-03 on 22.02.2024. The investigation relied upon business records, the “Garage Plug” software, slip pads, sales records, statements recorded from persons connected with the business and information obtained from other persons.
