Dhruv Medicos (P.) Ltd. v. Deputy Commissioner
In favour of the revenue
The ruling in brief
The High Court of Delhi (W.P.(C) No. 10213 of 2025, judgment dated 29 September 2026) declined to interfere at the show-cause stage in proceedings under Section 74 of the CGST Act read with Rules 101 and 142. Dhruv Medicos (P.) Ltd., a medicine distributor, challenged a show cause notice and the appropriation of amounts deposited during audit, alleging coercion, limitation errors, incorrect computation, and lack of jurisdiction. The bench held that statutory adjudication had already commenced and the notice had not finally determined tax liability. Objections—including whether payment was voluntary—were matters for the adjudicating authority after reply and hearing. Premature writ relief was unwarranted. The outcome favoured the revenue; the assessee was left to pursue its defences in the pending adjudication.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST Rules R.101 — Audit by tax authorities.
- CGST Rules R.142 — Notice and order for demand of amounts payable under the Act.
Source documents
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