Delhi High Court on GST Appeals: No 10% Penalty Pre-Deposit for SCNs Issued Before 01.10.2025

The Delhi High Court in Krishan Pal Singh Vs Additional Commissioner Delhi West Commissionerate & Anr. (Delhi High Court) has addressed two key aspects under the CGST Act, 2017:

  • Whether the assessee can bypass the statutory appellate remedy and invoke writ jurisdiction to challenge an Order-in-Original and Show Cause Notice; and
  • Whether the amended pre-deposit provisions in Section 107(6) and Section 112(8) (introduced via Notification No. 16/2025-Central Tax dated 17.09.2025, effective 01.10.2025) apply to proceedings initiated through Show Cause Notices issued before 01.10.2025.

While the Court declined to interfere on merits due to the availability of an appellate remedy, it gave important clarity on the applicability of the amended pre-deposit regime, following its earlier decision in Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II), CGST Delhi Zone & Anr., 2026:DHC:6124-DB.

Background of the Writ Petition

Reliefs Sought by the Petitioner

Through the writ petition, the assessee, Krishan Pal Singh, approached the Delhi High Court seeking multiple writs, including:

  • Quashing of the Order-in-Original
    The assessee prayed for a writ of certiorari to set aside Order-in-Original No. 100/CGST WEST/GST/SG/ADC/2024-25 dated 31.01.2025, issued vide C. No. DGGI/Adc/West/S.Garg/100/2025 by Respondent No. 1.
    The order was challenged as:

    • Arbitrary
    • Contrary to law
    • In breach of principles of natural justice

  • Quashing of the Show Cause Notice
    The assessee also sought quashing of Show Cause Notice No. 75/2024-25 dated 26.07.2024, issued vide F. No.DGGI/INT/INTL/577/2023/3914-3996 by Respondent No. 2, alleging that:

    • The SCN was issued without jurisdiction
    • It was arbitrary and contrary to the provisions of the CGST Act, 2017

  • Declaration on Non-Retrospective Application of Amended Pre-Deposit Provisions
    The assessee requested a declaration that the amended pre-deposit conditions in:

    • Section 107(6) and
    • Section 112(8)
      (inserted via Notification No. 16/2025-Central Tax dated 17.09.2025 with effect from 01.10.2025)
      cannot be applied retrospectively to proceedings that arise from Show Cause Notices issued before 01.10.2025.

  • Alternative Relief – Waiver of Pre-Deposit Requirement
    In the alternative, the assessee asked the Court to waive the mandatory pre-deposit under Section 107(6) and Section 112(8) for filing an appeal against the impugned Order-in-Original, in the specific factual context of the case.

Allegations and Adjudication Proceedings

Nature of Allegations

As recorded in the order, the allegations against the assessee included:

  • That he had created and controlled 13 firms; and
  • Through these entities, Input Tax Credit amounting to Rs.30,50,13,190/- was allegedly passed on.

These assertions formed the foundation of the adjudication proceedings initiated under the CGST Act, 2017.

Common Order Against Multiple Noticees

The Adjudicating Authority passed a common Order-in-Original involving:

  • A total of 81 noticees, including the present assessee.
  • The impugned order ran into more than 300 pages, covering the factual matrix, role of different noticees, and findings in relation to alleged wrongful availment and passing on of Input Tax Credit.

Petitioner’s Core Contentions

1. Non-Speaking and Jurisdictionally Defective Order