Ims Mercantiles Private Limited v. Union Of India & ORS.

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IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 13007/2024 & CM APPL. 54154-55/2024 IMS MERCANTILES PRIVATE LIMITED .....Petitioner Through:

Mr Ankur Jain, Mr Kumar Vikramaditya, Ms Divya Dave and Mr Pranav Ojha, Advocates.

versus UNION OF INDIA & ORS.

.....Respondent Through:

Ms Radhika Bishwajit Dubey, CGSC and Ms Gurleen Kaur Waraich, Advocate for UOI/R1.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE SACHIN DATTA

O R D E R

% 17.09.2024 1.

Issue notice. The learned counsel for the respondents accepts notice. 2.

The petitioner has filed the present petition, inter alia, impugning the Show Cause Notice dated 03.08.2024 (hereafter the impugned SCN) issued by respondent no.3 under Section 74 of the Central Goods and Services Tax Act, 2017 (hereafter the CGST Act) and the Delhi Goods and Services Tax Act, 2017 (hereafter the DGST Act).

3.

The learned counsel for the petitioner submits that one of the issues involved is the classification of the goods. He submits the impugned SCN proceeds entirely on erroneous observation that the petitioner's entire turnover is only of the goods in question. He submits that the controversy is confined to goods which constitute less than 3% of the petitioner's turnover The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 20:28:00

and therefore, the proposed demand is excessive. 4.

He submits that the impugned SCN is liable to be set aside on this ground only. He also submits that the proposed demand is unsustainable as the petitioner has correctly classified his goods. 5.

We are not persuaded to entertain the present petition. The purpose of the impugned SCN is to enable the petitioner to respond to the grounds on which the demand is proposed.

It would be inapposite to enter into the controversy, which is a subject matter of the impugned SCN, before the same is adjudicated.

The petitioner has full opportunity to raise all the contentions before the adjudicating authority. If the same are not accepted, the petitioner also has the statutory remedy of appeal. 6.

In view of the above, the petition is dismissed. Pending applications stand disposed of.

VIBHU BAKHRU, J SACHIN DATTA, J SEPTEMBER 17, 2024 M Click here to check corrigendum, if any The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 20:28:00