The Delhi High Court has held that where the show cause notice was issued prior to 01.10.2025 and the impugned order imposes penalty only without any demand of tax, the appellate remedy is governed by Section 107(6) as it stood on the date of issuance of the SCN, and the substituted proviso requiring 10% pre-deposit of disputed penalty shall not apply. The order by Justice Anil Kshetarpal and Justice Bharat Parashar in WP(C) 13927/2026 (Krishan Pal Singh, decided 21.09.2026) follows the court’s own earlier decision in Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II) (2026:DHC:6124-DB).
The petitioner was one of 81 noticees in a common proceeding involving alleged creation of 13 firms to pass on ITC of Rs. 30.50 crores. The OIO running over 300 pages imposed penalty on the petitioner without raising a separate demand of tax against him. The court declined to examine the merits in writ jurisdiction but protected the appellate remedy by directing that the appeal be entertained without insisting on the substituted pre-deposit, provided it is filed within two weeks.
- 2026-juristway.com-2626-HC(Delhi)-GST | High Court of Delhi | W.P.(C) 13927/2026 | 21.09.2026