Nishant Raj Vs Union of India through (Patna High Court)
Patna High Court has directed a petitioner, Nishant Raj, to seek a remedy from the appellate authority regarding an alleged illegal GST demand. The petitioner had filed a writ petition challenging an order dated January 22, 2025, and a subsequent summary order in Form GST DRC-07 dated January 23, 2025. The petitioner’s central argument was that the demand was without jurisdiction, as his financial turnover for the period in question was below the ₹20 lakh threshold for GST registration and tax payment. This threshold is stipulated under Section 22 read with other provisions of the Central Goods and Services Tax Act, 2017, and a specific notification from the Central Board of Excise and Customs.
The petitioner had also challenged the initial show-cause notice, arguing that it was issued under a section of the Act that requires proof of fraud or wilful misstatement, which he claimed was absent in his case. He sought to have the orders and notice quashed and to be protected from any coercive action.
However, after hearing the arguments, the High Court observed that the petitioner had not submitted a detailed reply to the show-cause notice and that several of the issues raised, including the dispute over the 18% GST rate, were factual matters that needed to be adjudicated. The court concluded that these were “disputed issues which can be adjudicated before the Appellate Authority.”
