The Delhi High Court relegated a trader to appeal against two Section 74 orders, finding the common notice for 158 noticees set out the alleged modus operandi, and left the penalty objection open.

The Delhi High Court has declined to interfere in writ jurisdiction with demands arising from an alleged fake ITC network, holding that a detailed common show cause notice (SCN) did not lack the particulars required by M/s G.R. Infra Projects Limited, Ratlam v. The State of Madhya Pradesh & Ors., and that the objections can be raised in appeal. [Manoj Kumar Prop M.K. Steel Traders v. Additional Commissioner, Central Goods and Services Tax & Anr., 2026-juristway.com-3165-HC(Delhi)-GST]

A Division Bench of Justice Anil Kshetarpal and Justice Bharat Parashar disposed of two writ petitions against orders-in-original dated 4 Feb 2025, with demands of ₹6,14,568 and ₹2,93,53,860. Justice Anil Kshetarpal wrote the judgment.

The SCN dated 1 Aug 2024 arose from a search at the premises of one Mohit Jain, alleged to have created multiple firms to pass on ITC through invoices without supply. In a statement recorded on 19 May 2023, the petitioner had said he helped distribute such invoices for commission.

The petitioner argued that the Section 74 notice was non-speaking and, in the second petition, that the SCN proposed no penalty against him, yet the order imposed one.

The Bench found that the common notice, running to nearly 80 pages, set out the alleged transactions and modus operandi, and that being common to several noticees did not make it deficient. Applying G.R. Infra requires examining the contents of the notice, and the Bench was not persuaded that the ruling justified bypassing the appeal remedy.

The penalty objection was left to the appellate authority, with the Bench expressly not accepting the Department’s position on it. Any application under Section 14 of the Limitation Act, 1963 to exclude the time spent in the writ petitions is to be considered by the appellate authority. No view was expressed on merits.

2026-juristway.com-3165-HC(Delhi)-GST