M/s IMS MERCANTILES LTD v. UNION OF INDIA & ORS.
High Court, Delhi
Prathiba M. Singh, Justice & Shail Jain, Justice
M/s IMS MERCANTILES LTD
v.
UNION OF INDIA & ORS.
W.P.(C) 15527/2025 & CM APPL. 63490/2025 dated 10.10.2025
Law : GST
Act Name : Central Goods & Service Tax Act, 2017
Relevant Section : Section 74, 122 & 161
Decision : In favour of assessee
Demand – Penalty – GST evasion – Rectification – Misclassification of goods & HSN Code – Petitioner contended combo packs of chargers with rechargeable batteries GST rate payable would be 18 % or 28 % – Demand raised on total turnover instead of disputed product turnover – Remedy of appeal available – Search conducted alleging tax evasion through misdeclaration of duty slab for HSN Code 8507 – SCN issued for short payment of GST – Court earlier directed personal hearing and reasoned order – Impugned rectification order confirmed demand and imposed equal penalties under Sections 74(1), 122(1)(x), 122(1)(xvi) & 122(1)(xvii) of CGST/DGST Acts – Court noted fundamental flaw in approach as GST demanded on total turnover despite actual B2B and B2C combo sales data available with adjudicating authority – No reasoning given for levying GST on total turnover – Matter requires factual analysis – Held: Writ petition disposed – Petitioner relegated to appellate remedy – Pre-deposit to be calculated only on B2B and B2C sales amounts – Petitioner to file appeal by 30.11.2025 with requisite pre-deposit not to be treated as time-barred.
Represented By:
Counsel for the Petitioner: Bimal Jain, Anurag Jain & Ishika Agarwal, Advs.
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