Rajeev Gupta v. Additional Commissioner Cgst Delhi West Commissionerate & Ors

J U D G M E N T ANIL KSHETARPAL, J.:

¶1By way of this common judgment, this Court shall dispose of twelve (12) connected Writ Petitions preferred under Article 226 of the Constitution of India. The Petitioners assail the common Order-in-Original dated 06.02.2025 [hereinafter referred to as the "Impugned Order"], passed by the Additional Commissioner, CGST, Delhi West, imposing penalties under Sections 74, 76(2) and 122(1) of the Central Goods and Services Tax Act, 2017 [hereinafter referred to as the

"CGST Act], read with the corresponding provisions of the State/Union Territory enactments and the Integrated Goods and Services Tax Act, 2017 upon them.

¶2The Impugned Order arises from common adjudicatory proceedings involving sixty-one (61) companies/firms and seventy-one (71) individuals connected with them. With respect to six (6) firms, the matter has been kept pending in view of the order passed by the High Court of Punjab and Haryana. The Petitioners before this Court are either Managing Directors or Directors of the concerned companies.

¶3The Petitioners were issued Show Cause Notices in the year 2020 [hereinafter referred to as the "SCNs"] in relation to the period from 01.07.2017 to 31.03.2019. The concerned companies were alleged to have fraudulently availed and utilised Input Tax Credit on the strength of invoices issued without any corresponding supply of goods.

¶4Insofar as the Petitioners in their individual capacities are concerned, the SCNs did not propose any demand of tax against them. They were called upon to show cause as to why penalties should not be imposed upon them under Sections 74, 76(2) and 122(1) of the CGST Act for having allegedly masterminded the modus operandi involving generation, availment and utilisation of fraudulent Input Tax Credit.

¶5By the Impugned Order, each of the Petitioners has been subjected to a penalty equivalent to the amount mentioned against his

name. The particulars of the Petitioners and the penalties imposed upon them are as follows: S. No. Name & Occupation (Director, Proprietor, MD, Partner) Associate d Firm Amount of Ineligible ITC (in Rs.) Amount to be appropriated (In Rs.) CGST SGST IGST Total CGST SGST IGST

(I)

(II)

(III)

(IV)

(V)

(VI)

(VII)

(VIII)

(IX)

(X) Rajeev Gupta, MD M/s RCI Industries and Technolog ies 07AAAC R5727Q2 ZT 64655 2730 64655 2730 54380 2085 18369 07545

Rajeev Gupta, MD M/s RCI Industries and Technolog ies 08AAAC R5727QI ZS 71477 71477 16358 6373 30654 1497

Anil Kumar Jain, Director M/s Jatalia Global Ventures Limited 37945 4823 37945 4823 11893 2135 87784 1781

Anil Kumar Jain, Director M/s Grimus Exports Pvt. Ltd. 90375 90375 18075 0154

Arun Kumar Jain, MD M/s B.C. Power Controls Ltd. 07AADC B4984A1 ZV 30198 6227 30198 6227 60397 2454

Arun Kumar Jain, MD M/s B.C. Power Controls Ltd. 08AADC R4984A1 ZT 84645 84645 12979 29908

Arun Kumar Jain, MD M/s. Smita Global Pvt. Ltd. 46044 46044 35606 12769 5203

Arun Sharma, MD M/s Varun Foils Limited 29977 29977 45591 51587 25000 25000

Prem Chand Gupta, Director M/s. Prominent Metal 85601 85601 17120

Private Ltd. Anil Kumar Jain, Real Incharge M/s. Skyway Ventures Pvt. Ltd.

20780 20780 15406 56966

Amit Gupta, Director M/s. Progressiv e Alloys (India) Pvt. Ltd. 21151 21151 42303

Vinay Mittal, Director M/s AVA Resources Pvt. Ltd 23350 23350 46701

Ravi Aggarwal, Director M/s. Agsons Agencies

(I) Pvt Ltd 48827 48827 97655

Arun Kumar Jain, MD M/s Bonlon Steels Pvt. Ltd. 07AAAC B6473H1 ZO 72980 72980 16716 16267 6895

Arun Kumar Jain, MD M/s. Bonlon Steels Pvt. Ltd. 08AAAC B6473H1 ZM 64040 64040

Prem Chand Gupta, Director M/s. Oyster Steel & Iron Pvt. Ltd 37088 37088 74177

Prem Chand Gupta, Director M/s. Worldwid e Metal Private Ltd. 69502 69502 13900

Prem Chand Gupta, Director M/s. Olympus Metal Pvt. Ltd. 41801 41801 83602

¶6Heard learned counsel representing the parties at length and with their able assistance, perused the paper books.

¶7The principal contention of the Petitioners is that Section 122(1) of the CGST Act applies only to a "taxable person", whereas the Petitioners have neither been treated as taxable persons nor has any tax demand been raised against them in their individual capacities.

The Petitioners have also questioned the invocation of Sections 74 and 76(2) of the CGST Act, contending that no tax was payable or collected by them personally.

¶8Learned counsel for the Respondents, on the other hand, submits that the Impugned Order is appealable under Section 107 of the CGST Act and that all such contentions may be examined by the Appellate Authority.

¶9The issue concerning the applicability of Section 122(1) to a person who is not a taxable person is presently pending consideration before the Supreme Court. The Supreme vide order dated 04.08.2025 in Special Leave to Appeal (Civil) No.18178/2025 captioned Mukesh Kumar Garg v. Union of India and Ors., has passed the following order: "1. Two primary contentions have been raised. First, Section 122(1) of the Central Goods and Services Tax Act, 2017 (for short "the Act") would not be applicable to the petitioner as he is a non-taxable person. Secondly, the provisions of Section 122 (1A) of the Act which came into force w.e.f. 01.01.2021 cannot be applied retrospectively for the Assessment Years 2017-2020.

¶2Leave granted.

¶3In the meanwhile, there shall be stay on the recovery of the amount directed to be deposited provided the appellant deposits 25% of the demand before the GST Department either through Electronic Ledger or through Cash Ledger."

¶10It needs to be clarified that only the first contention noticed in the aforesaid order bears upon the present batch of Petitions. Section 122(1A) was neither invoked in the SCNs nor employed in the Impugned Order against any of the Petitioners.

¶11During the pendency of the present Writ Petitions, this Court

delivered its detailed judgment dated 31.07.2026 in W.P.(C) 8414/2026 captioned Gaurav Jain & Anr. vs. Joint Commissioner (Appeals-II) CGST Delhi Zone & Anr. and held that the proviso to Section 107(6), as substituted with effect from 01.10.2025, does not govern an Appeal arising from adjudicatory proceedings initiated through an SCN issued before that date. Such an Appeal continues to be governed by Section 107(6) as it stood on the date of commencement of the adjudicatory proceedings.

¶12It is also not in dispute that an Appeal under Section 107 of the CGST Act is maintainable against the Impugned Order.

¶13The respective SCNs were issued to the Petitioners in the year 2020, much before the substitution of the proviso to Section 107(6) with effect from 01.10.2025. Consequently, the appellate remedy available to the Petitioners is governed by Section 107(6) as it stood on the dates of issuance of their SCNs.

¶14The principal issue raised by the Petitioners concerning the applicability of Section 122(1) of the CGST Act to a person who is not a "taxable person" is presently under consideration before the Supreme Court. Judicial propriety, therefore, warrants that this Court refrain from expressing any opinion on the said issue. The Petitioners have, however, raised several other grounds which involve examination of their respective roles, the allegations levelled against them and the material relied upon by the Adjudicating Authority. These matters can appropriately be examined in the statutory appellate proceedings.

¶15In view of the above, the present Writ Petitions are disposed of with the following directions: i. The Petitioners are relegated to the statutory remedy of Appeal under Section 107 of the CGST Act, read with the corresponding provisions of the applicable State/Union Territory enactments. All grounds urged in the present Writ Petitions are left open to be raised before the Appellate Authority. ii. The issue concerning the applicability of Section 122(1) of the CGST Act to a person who is not a "taxable person" shall be considered in conformity with the decision ultimately rendered by the Supreme Court in Mukesh Kumar Garg v. Union of India and Others. iii. In view of the judgment of this Court in Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II), CGST Delhi Zone & Anr., the requirement of pre-deposit shall be governed by Section 107(6) as it stood on the dates of issuance of the respective SCNs and not by the proviso substituted with effect from 01.10.2025. iv. If the electronic portal does not permit any Petitioner to file an Appeal for want of an individual GST registration or temporary identification number, the Appellate Authority shall accept the Appeal in physical form and shall not reject it merely on account of the mode of filing.

v. If an application for exclusion of the period spent in these Writ Petitions before the High Court is filed for the purpose of limitation, the same shall be considered pragmatically by the Appellate Authority.

¶16It is clarified that this Court has not expressed any opinion on the merits of the contentions raised by either party. All the present Writ Petitions, along with the pending applications, are disposed of in the aforesaid terms.

ANIL KSHETARPAL, J.

SHAIL JAIN, J. AUGUST 13, 2026 s.godara/ad

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 07.08.2026 Judgment pronounced on: 13.08.2026 Judgment uploaded on: 13.08.2026 # CNR No. DLHC010109142025 + W.P.(C) 2704/2025, CM APPL. 12866/2025 and CM APPL. 14886/2026 ARUN KUMAR JAIN .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Mr. Anurag Ojha, SSC with Mr. Dipak Raj, Mr. Aryaman Singh Chouhan and Mr. Aditya Chaudhary, Advs. # CNR No. DLHC010128102025 + W.P.(C) 3107/2025, CM APPL. 14692/2025 and CM APPL. 10630/2026 PREM CHAND GUPTA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. # CNR No. DLHC010128122025 + W.P.(C) 3109/2025 and CM APPL. 14699/2025 RAJEEV GUPTA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Mr. Anurag Ojha, SSC with Mr. Dipak Raj, Mr. Aryaman Singh Chouhan and Mr. Aditya Chaudhary, Advs. Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. Mr. Aditya Singla, SSC-CBIC with Ms. Arya Suresh Nair, Adv. # CNR No. DLHC010131042025 + W.P.(C) 3140/2025 and CM APPL. 14829/2025 PREM CHAND GUPTA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. # CNR No. DLHC010131232025 + W.P.(C) 3159/2025 and CM APPL. 14867/2025 PREM CHAND GUPTA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. # CNR No. DLHC010131652025 + W.P.(C) 3201/2025 and CM APPL. 14933/2025 RAVI AGGARWAL .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus THE ADDITIONAL COMMISSIONER CGST, DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Mr. Anurag Ojha, SSC with Mr. Dipak Raj, Mr. Aryaman Singh Chouhan and Mr. Aditya Chaudhary, Advs. # CNR No. DLHC010140252025 + W.P.(C) 3373/2025 and CM APPL. 15963/2025 VINAY MITTAL .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Samiksha Godiyal, SSC- CBIC with Mr. Tenzing Namgyal Bhutia and Mr. Ritiwik Narayanan Advs. # CNR No. DLHC010140312025 + W.P.(C) 3380/2025 and CM APPL. 15981/2025 PREM CHAND GUPTA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. # CNR No. DLHC010140472025 + W.P.(C) 3396/2025 and CM APPL. 16062/2025 ARUN KUMAR JAIN .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Mr. Anurag Ojha, SSC with Mr. Dipak Raj, Mr. Aryaman Singh Chouhan and Mr. Aditya Chaudhary, Advs. # CNR No. DLHC010181842025 + W.P.(C) 4231/2025 and CM APPL. 19512/2025 ARUN SHARMA .....Petitioner Through: Mr. Abhishek Garg and Mr. Naman Mehta, Advs. versus ADDITIONAL COMMISSIONER CGST DELHI WEST COMMISSIONERATE & ORS. .....Respondents Through: Ms. Anushree Narain, SSC, Mr. Apurv Yadav and Mr. Naman Choula, Advs. # CNR No. DLHC010274502025 + W.P.(C) 6001/2025 and CM APPL. 27476/2025 ANIL JAIN .....Petitioner Through: Mr. Akhil Krishan Maggu, Mr. Vikas Sareen, Ms. Oshin Maggu, Mr. Aryan Nagpal, Ms. Palak Sarna, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Ms. Monica Benjamin, SSC with Ms. Laiba Arif & Ms. P