M/S SWARN COSMETICS (INDIA) vs UNION OF INDIA & ORS.

Judgment text excerpt

$~38 * IN THE HIGH COURTOF DELHIAT NEW DELHI Date of Decision: 31st October, 2025 + W.P.(C) 16532/2025, CM APPL. 67713/2025 & CM APPL. 67714/2025 M/S SWARN COSMETICS (INDIA) .....Petitioner Through: Mr. Sahil A Garg Narwana, Ms. Amnaya Jagannath Mishra, Mr. Dinesh Singhal, Mr. Kapil Gola and Ms. Honey Gola, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr Akash Verma, Sr. Standing Counsel, CBIC with Ms Aanchal Uppal, Adv. for R-1. (M: 9697980007) Mr. Sumit K. Batra, Adv. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid mode. 2. The present petition has been filed by the Petitioner seeking setting aside of the impugned Show Cause Notice dated 21st November, 2024 issued by the Department of Trade & Taxes, Government of N.C.T. of Delhi (hereinafter, ‘impugned SCN’) and the consequent impugned order dated 23rd February, 2025 passed by the Office of Sales Tax Officer Class II (hereinafter, ‘impugned order’). The demand raised in the impugned order relates to the financial year 2020-21. Signature Not Verified Digitally Signed W.P.(C) 16532/2025 Page 1 of 6 By:DEVANSHU JOSHI Signing Date:03.11.2025 15:59:04 3. The said demand has been raised in the following terms: 4. The background of the present case is that the impugned SCN was issued to the Petitioner on 21st November, 2024. The said SCN was issued on various grounds, including: (i) Reconciliation of GSTR-01 with GSTR-09; (ii) Excess input tax credit (ITC) claimed on account of non- reconciliation of information; (iii) ITC to be reversed on non-business transactions & exempt supplies; (iv) ITC claimed from cancelled dealers, return defaulters & non tax payers. 5. No reply to the impugned SCN was filed by the Petitioner, thus leading