Appeal Remedy to be Availed Against GST Adjudication Order

Case Title: Magicon Impex Pvt. Ltd. v. Commissioner of Central Goods and Service Tax & Ors.
Court: High Court of Delhi
Petition Number: W.P.(C) 5046/2025 & CM APPL. 23151/2025
Date of Judgement: 22nd April, 2025
Relevant Sections: Section 74, Section 107, Section 65 of CGST Act, 2017; Section 20 of IGST Act, 2017
Category of Dispute: Input Tax Credit, Refund, Audit, Demand & Penalty

Facts of the Case (Paras 2–7)

1. The petitioner, engaged in export/import of mobile phones, challenged an order dated 07.01.2025 passed under Section 74 CGST Act imposing demands, late fee, and penalties.

2. Earlier, its refund claim (filed in 2019) was rejected as time-barred under Section 54(1). However, vide order in W.P.(C) 6556/2020 (06.02.2023), the Court directed refund processing due to limitation relaxation granted during COVID (Para 4).

3. Subsequently, audit memos and summons were issued. Petitioner deposited amounts on 11.01.2024 but further revised audit memos and a Demand-cum-SCN dated 01.08.2024 were issued (Paras 5–6).

4. The petitioner earlier challenged the SCN in W.P.(C) 11522/2024, wherein Court held multiple audit memos had no statutory basis but upheld the validity of SCN, leaving petitioner to contest in adjudication (Paras 5–6).

5. The impugned order (07.01.2025) adjudicated the SCN after considering reply/written submissions (Para 8).

Question(s) in Consideration (Paras 7–9)

• Whether the High Court can interfere under Article 226 against an adjudication order under Section 74 CGST Act?

• Whether issuance of multiple audit memos vitiates the demand and penalty proceedings?

• Whether petitioner can seek waiver of pre-deposit before High Court?

Observations of the Court (Paras 7–10)

1. Court noted that reply and submissions were duly considered in the adjudication order; detailed findings were recorded (Para 8).

2. Writ jurisdiction is not appropriate at this stage; remedy lies under appeal mechanism provided in Section 107 CGST Act (Para 9).

3. Financial inability to make pre-deposit must be placed before Appellate Authority, not High Court (Para 10).

Judgement of the Court (Paras 11–12)

• Petition was disposed of, granting liberty to petitioner to file appeal under Section 107 CGST Act within 30 days, which shall not be dismissed on limitation grounds (Para 11).

• Prayer for waiver of pre-deposit to be considered by the Appellate Authority.

Between Fine Lines

• High Court refused to interfere in adjudication order under Article 226.

• Remedy available is an appeal under Section 107 CGST Act.

• Multiple audit memos, though irregular, do not invalidate SCN or adjudication.

• Pre-deposit waiver cannot be claimed before High Court.

• Appeal filed within 30 days will not be dismissed as time-barred.

Summary of Referred Cases

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”