TaxTMI 
TaxTMI 
Writ Jurisdiction and Statutory Appeal in GST Fraud Investigations: A Judicial Re-affirmation
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....d Section 122 of the CGST Act culminated in demands and penalties against several traders. The High Court declined to exercise writ jurisdiction and relegated the petitioners to the statutory appellate remedy u/s 107, relying on established principles limiting extraordinary jurisdiction where factual issues and alternative remedies exist. The decision is significant within the GST adjudicatory landscape for clarifying the boundary between judicial review under Article 226 and the appellate/tribunal remedy provided in the CGST Act, particularly in complex tax fraud investigations that raise primarily factual questions. It also discusses procedural protections such as personal hearing and the role of evidence like Relied Upon Documents (RUDs....
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....ugned order was appealable u/s 107 of the CGST Act and there was no pleaded breach of fundamental rights, excess of jurisdiction, or vires challenge. The present dispute largely concerns contested factual issues-whether supplies were actually made and whether ITC was fraudulently availed. The Court emphasized that such factual disputes are better addressed by the appellate authority which can examine evidence and documents in detail. This approach follows orthodox administrative law doctrines that prefer specialized statutory forums for fact-intensive adjudication. 2. Principles of Natural Justice and Personal Hearing The petitioners contended that they were denied personal hearing. The impugned order specifically records that personal he....
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....e adjudication required examining extensive documentary material, bank transactions, documentary delivery chains, and recorded statements (e.g., the petitioner's statement attributing certain invoice issuance to directions of a third party and inability to state where goods were delivered). The High Court stressed that such fact-intensive inquiries are unsuited for resolution in writ proceedings which are not an alternative to appeal. The Court observed that the petitioner's recorded statement itself raised suspicions: inability to identify delivery locations and attributing invoice issuance to directions of another person suggested deeper investigation was necessary. The Court's position aligns with precedents that factual dis....
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....ons: Petitioners were directed to file the appeal u/s 107 with the requisite pre-deposit by 15 July 2025, and the appellate authority was instructed to adjudicate the appeal on merits and not reject it on limitation grounds. Ratio: Where a statutory appeal exists and the dispute principally concerns factual issues arising from an investigation into alleged tax fraud, extraordinary jurisdiction under Article 226 should not ordinarily be invoked; parties should be relegated to the appellate mechanism unless exceptional grounds (as enumerated in Commercial Steel) exist. Obiter: Observations concerning the adequacy of email service and the credibility implications of the petitioner's own recorded statement are persuasive but context-speci....