Details of Show Cause Notice

Authority: Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit

Date of Receipt: 25/03/2026

Nature of Notice: Show Cause Notice issued under provisions of Central Goods and Services Tax Act, 2017

Alleged Violations:

  • Short payment of GST on certain supplies made during FY 2020-21 to FY 2024-25
  • Classification dispute relating to applicable HSN codes and GST rates on LED display/video wall products
  • Alleged misclassification under HSN 8528, 8529, and 8531 charging 18% GST instead of correct 28% under HSN 85285900

Financial Impact:

  • Proposed recovery of GST aggregating to approximately ₹8.39 Crores (excluding applicable interest and penalty)
  • Matter is at adjudication stage, final liability not yet determined

Company's Response

The Company believes it has adequate grounds to defend its position and is in the process of taking appropriate legal steps in the matter. The disclosure is submitted without admission of liability.

Investigation Background

The notice stems from an investigation that began with M/s OSEL Devices Ltd, which was found to be supplying LED Video Display Walls classified under HSN 85285900 but charging GST @18% instead of 28%. During this investigation, it was discovered that Purple Wave Infocom had received supplies from OSEL Devices Ltd and subsequently supplied similar goods @18% instead of 28%.

Key Investigation Findings

  • Multiple summons were issued to Purple Wave Infocom between January 2025 and January 2026
  • Statement recorded from Mr. Manoj Kumar Singh, Director of the company
  • Inspection conducted at company's principal place of business on 12/06/2025
  • Company submitted HSN-wise details of supplies through emails dated 19/11/2025 and 29/01/2026

GST Short Payment Quantification

The notice details GST short payment across multiple GSTINs of the company:

GSTIN 07AAECP5019P1Z1 (Delhi): ₹7,88,02,722

  • 2020-21: ₹4,06,944
  • 2021-22: ₹2,56,83,031
  • 2022-23: ₹1,29,78,413
  • 2023-24: ₹1,63,69,330
  • 2024-25: ₹2,33,65,003

GSTIN 29AAECP5019P1ZV (Karnataka): ₹21,93,890

  • 2020-21: ₹1,81,135
  • 2021-22: ₹27,600
  • 2022-23: ₹1,29,420
  • 2023-24: ₹12,13,617
  • 2024-25: ₹6,42,118

GSTIN 06AAECP5019P1Z3 (Haryana): ₹21,19,636 (2024-25 only)

GSTIN 27AAECP5019P1ZZ (Maharashtra): ₹7,50,103 (2024-25 only)

Total Demand: ₹8,38,65,351 across all GSTINs

Legal Provisions Cited

The notice invokes Section 74(1) of CGST Act, 2017 for determination of tax not paid by reason of fraud, wilful misstatement or suppression of facts. The extended period of limitation is being invoked due to alleged wilful suppression and misstatement of facts.

Adjudication Authority

The case is made answerable to Additional Commissioner/Joint Commissioner of Central Tax & CGST Delhi West Commissionerate, GST Bhawan, Nangal Raya, Janakpuri, New Delhi — 110046.

Company's Obligations

The company must show cause within 30 days of receipt why:

1. The GST short paid should not be demanded and recovered

2. Interest should not be demanded and recovered under Section 50(1)

3. Penalty should not be imposed under Section 74(1)

Enclosures

Annexure A — Copy of Show Cause Notice issued by Directorate General of GST Intelligence (DGGI)