HC Declines Writ Against GST Demand, Directs Appeal Route Under Section 107

The petitioner, a courier service provider, was issued summons under Section 70 of the CGST Act seeking financial and transactional records. Though the petitioner responded and furnished documents, proceedings culminated in a show cause notice alleging suppression of taxable value and short payment of GST for the period 2018-19 to 2023-24. The department proposed a demand exceeding Rs. 3 crore under Section 74.

Subsequently, despite the petitioner seeking relied upon documents and submitting a detailed reply along with invoices, rate lists, and supporting materials, the adjudicating authority passed an Order-in-Original confirming the entire demand. The petitioner approached the High Court challenging both the SCN and the order primarily on grounds of violation of natural justice, non-supply of documents, and incorrect valuation methodology.

Main Issue: Whether a writ petition is maintainable against a GST adjudication order when a statutory appellate remedy under Section 107 of the CGST Act is available.

HC’s Decision: The High Court refused to entertain the writ petition and dismissed it. It held that the petitioner had an effective and adequate alternative remedy by way of appeal under Section 107 of the CGST Act. The Court observed that the issues raised, such as non-supply of relied upon documents, improper appreciation of reply, and alleged procedural lapses—arose from the adjudication record and could be appropriately examined by the appellate authority.

The Court further clarified that mere dissatisfaction with the adjudicating authority’s findings or procedure does not justify bypassing the statutory appeal mechanism. It found no exceptional circumstances warranting interference under Article 226 and granted liberty to the petitioner to pursue appellate remedies.

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