M/S Shri Jain Timber Traders Through Its Proprietor Sh Saurav Jain vs. Union Of INDIA & Ors.

Held

The Delhi High Court declined to exercise its extraordinary writ jurisdiction under Article 226, holding that the petitioners have an effective and complete statutory remedy available under Section 107 of the CGST Act to challenge the impugned adjudication orders. The Court clarified that appeals arising from SCNs issued prior to 01.10.2025 would be governed by Section 107(6) as it stood then, irrespective of the order date.

Facts

Petitioners challenged adjudication orders imposing penalties under GST, raising various procedural and substantive grounds, including the competence of officers to initiate proceedings and the applicability of Section 122(1) to non-taxable persons. They also contested the evidentiary material, denial of cross-examination, and quantification of penalties.

Key Issues

The key legal issues raised by petitioners included the competence of officers to initiate proceedings under Section 122, the applicability of Section 122(1) to a person who is not a 'taxable person', and various procedural and factual challenges to the penalty orders. The Court primarily decided on the availability of an alternative statutory remedy.