TaxTMI 
TaxTMI 
2026 (9) TMI 1278
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....rectors of M/s Sterne India Pvt. Ltd., seeking issuance of a writ in the nature of certiorari, to quash a common Order-in-Original dated 31.03.2026 passed by the Respondent No. 1, whereby a penalty of Rs. 27,11,59,404/- came to be imposed upon the Petitioners under Section 122(1A) of the Central Goods and Services Tax, 2017 ['Act of 2017']. FACTUAL BACKGROUND: 2. In order to comprehend the issues involved in the present case, relevant facts in brief are required to be noticed. 3. Mr. Rishiraj Singh Rathore ['Petitioner No. 1'] and Mr. Khushnud Khan ['Petitioner No. 2'], were at the relevant time, Directors of M/s Sterne India Private Limited ['the Petitioners Company'], a company, inter alia, engaged in the trading of mobile phones....
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....lied documents of its claimed suppliers. Subsequently, upon verification of the aforesaid documents, it was revealed that the account details furnished belonged to a different supplier, indicating that no genuine payment had been made against the invoices on which ITC had been claimed. 7. Following which, summons dated 20.05.2022 was issued to Petitioner No. 2 for appearance on 31.05.2022, which was sought to be deferred on medical grounds. Pursuant to a further summons dated 02.06.2022, the Petitioner No. 2 appeared on 07.06.2022 but declined to have his statement recorded when confronted with the material gathered during investigation. 8. During further investigation, tracing of the IMEI numbers through the manufacturers and authori....
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....have approached this Court seeking our indulgence. SUBMISSIONS: 12. Learned counsel representing the Petitioners does not dispute that the Petitioners have a statutory remedy of Appeal under Section 107 of the Act of 2017 against the Impugned Order. However, it is his case that since no SCN was issued, the entire proceedings which led to the passing of the Impugned Order suffers from jurisdictional error, warranting this Court's interference notwithstanding the availability of an appellate remedy. 13. Notwithstanding the aforestated, it is also his case that the present case if relegated to the Appellate Authority, would not be fruitful inasmuch as the said Authority does not have the power to remand the matter for fresh considerat....
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....if so, in what manner, is a matter that requires an examination of records and allied material, which exercise is more appropriately undertaken by the Appellate Authority. 18. Insofar as the denial of personal hearing is concerned, and whether the opportunity of hearing, was, in substance, denied to the Petitioners in their individual capacity, would require a close scrutiny of the hearing notices actually issued, the manner and mode of their service, and the timeline in which they came to be issued and received. 19. In the opinion of this Court, the aforestated, is essentially a question of fact, the determination of which would necessitate examination of the underlying notices and allied record, to be produced by the parties, and is....