Facts of the Case

The petitioner, Brilliant Metals Pvt. Ltd., filed a writ petition challenging the adjudication order dated 20.05.2022, which had arisen from a show-cause notice dated 08.02.2022.

The petitioner confined its relief to setting aside the said adjudication order.

It was brought to the Court’s attention that in a similar matter (W.P.(C) No. 5680/2022), the Delhi High Court had already quashed an adjudication order in light of the Circular dated 20.09.2022 issued by the revenue authorities.

Issues Involved

  1. Whether the adjudication order dated 20.05.2022 is sustainable in view of the Circular dated 20.09.2022 issued by the revenue.
  2. Whether fresh proceedings are required to be initiated by a proper officer in compliance with the said Circular.
  3. Whether jurisdictional objections under Section 6(2)(b) of the Central Goods and Services Tax Act, 2017 can be raised before the adjudicating authority.

Petitioner’s Arguments

  • The petitioner sought quashing of the adjudication order on the ground that it was inconsistent with the Circular dated 20.09.2022.
  • It was argued that similar adjudication orders had already been set aside by the Court in comparable matters.
  • The petitioner also reserved its right to raise jurisdictional objections under Section 6(2)(b) of the CGST Act, 2017.

Respondent’s Arguments

  • The respondent/revenue did not dispute that the present case was covered by the earlier decision of the Court in a similar matter.
  • It was submitted that other issues could still be raised before the adjudicating authority during fresh proceedings.

Court’s Findings / Order

  • The Delhi High Court set aside the adjudication order dated 20.05.2022.
  • The Court directed that proceedings shall be conducted de novo.
  • A fresh show-cause notice shall be issued by a proper officer, in compliance with the Circular dated 20.09.2022.
  • The writ petition was disposed of accordingly.

Important Clarification

  • The petitioner was granted liberty to raise jurisdictional issues before the adjudicating authority.
  • The adjudicating officer must consider Section 6(2)(b) of the CGST Act, 2017 while deciding jurisdictional aspects.

Sections Involved

  • Section 6(2)(b), Central Goods and Services Tax Act, 2017
    (Jurisdiction of officers and parallel proceedings under GST law)

 Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/RAS26092022CW125312022_113602.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.