Shub Conductors LLP And Ors Vs Joint Commissioner Central Tax GST Delhi East Delhi And Ors (Delhi High Court)
Summary: The Delhi High Court declined to entertain a writ petition challenging the order dated 11.01.2025, holding that the Petitioners had an effective statutory remedy of appeal under Section 107 of the CGST Act. The Petitioners contended that simultaneous proceedings under Sections 74 and 73 had been initiated for the same period and that the CGST proceedings were barred by Section 6(2)(b) of the CGST Act. They also submitted that the controversy involved a pure question of law warranting exercise of writ jurisdiction.
The Respondents submitted that the CGST show cause notice under Section 74 was issued on 22.03.2023, whereas the SGST notices relied upon by the Petitioners were issued subsequently, beginning on 25.09.2023. The Court observed that Section 6(2)(b) applies where proceedings have already been initiated by the State GST authority on the same subject matter. On the chronology placed before it, the Court found no jurisdictional infirmity warranting bypass of the statutory appeal. The Court also distinguished the earlier proceedings relating to seized goods from the subsequent Section 74 proceedings.
Accordingly, the writ petition was disposed of and the Petitioners were relegated to the statutory remedy of appeal under Section 107. The period spent prosecuting the writ petition was directed to be excluded while computing limitation for the statutory appeal.
