Rajdhani Traders Vs Central Board of Indirect Taxes And Customs (Rajasthan High Court)
Facts: Petitioner challenged the Order-in-Original dated 24.12.2025 passed by the Assistant Commissioner, Alwar, raising a GST demand of Rs. 1,13,57,300/- for FY 2018-19 and FY 2019-20 due to wrongful availment and utilization of Input Tax Credit. The petitioner also challenged a Circular dated 06.07.2022. The writ petition was filed on 13.01.2026.
Submissions: Respondents raised a preliminary objection regarding maintainability, stating that the statutory alternative remedy under Section 107 of the CGST Act, 2017 had not been availed.
Findings & Reasoning: The High Court held that it was not inclined to directly entertain the writ petition without the petitioner exhausting its statutory remedy under Section 107. The Court observed that the challenge to the Circular dated 06.07.2022 appeared to be a ruse to avoid an appeal and evade the mandatory statutory pre-deposit of 10%.
Directions & Final Decision: The Court dismissed the writ petition, granting liberty to the petitioner to file an appeal under Section 107. It directed the Appellate Authority to exclude the time spent in writ proceedings while calculating limitation if the appeal is filed within 30 days. Liberty was also granted to file a fresh writ petition restricted solely to challenging the circular. Pending applications were disposed of.
