Sunil Chauhan Vs Principal Commissioner of CGST Delhi North & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition under Article 226 of the Constitution challenging an Order-in-Original dated 16.12.2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017, along with DRC-07 and the Show Cause Notice dated 17.06.2025. The impugned order confirmed a GST demand of ₹5,51,34,232 together with applicable interest and imposed an equivalent penalty under Section 74, besides penalties under Sections 122(1)(ii) and 122(3)(e) of the CGST Act. The petitioner confined the challenge primarily to alleged violations of Sections 74(9) and 75(4) of the CGST Act, reliance on a statement recorded under Section 70, and the competence of the adjudicating authority to impose penalties.
The petitioner, a registered proprietor engaged in trading agro-chemical products, had received a Show Cause Notice issued by the Directorate General of Goods and Services Tax Intelligence on 17.06.2025 proposing recovery of GST for the financial years 2018-19 to 2022-23 on allegations of mis-declaration, undervaluation and clandestine clearance of taxable goods. A reply dated 16.07.2025 denied the allegations and sought permission to cross-examine certain persons whose statements and records were relied upon. The adjudicating authority subsequently passed the impugned order, recording that opportunities of personal hearing had been fixed on 09.10.2025, 14.10.2025 and 06.11.2025. The petitioner disputed service of notices for those hearings.
