GST SCN based on seized documents passed on by IT department cannot be baseless

J M Jain Prop Sh Jeetmal Choraria Vs Union of India (Delhi High Court)

Delhi High Court held that GST SCN based on documents, statements, evidence seized passed on by Income Tax Department cannot be held to be baseless and vague. High Court warns GST Department and other departments to be careful while citing judicial precedents specifically if the same has been produced or accessed through Artificial Intelligence [AI] software.

Facts-The present petition has been filed by the Petitioner- M/s J M Jain through its proprietor Mr. Jeetmal Choraria under Article 226 of the Constitution of India, inter alia, assailing the Show Cause Notice dated 26^th June, 2025 issued by the Joint Director, Directorate General of GST Intelligence, Delhi Zonal Unit. In addition, the Petitioner has also challenged the Constitutional validity of Section 75(2) of the Central Goods and Services Tax Act, 2017.

Conclusion- A perusal of the SCN would show that, at this stage, it cannot be said that the SCN is bereft of material particulars or that it is vague, in fact, all the documents, statements, evidence, etc. which was seized by the IT Department, and passed onto the GST Department is well within the knowledge of the Petitioner. Moreover, the RUDs have been supplied to the Petitioner. Thus, the SCN cannot be held to be baseless or vague.