GST Update

Desk of CA Praveen Sharma – 878 Series (CAPS)

Delhi High Court in the case of Vaneeta Impex Private Limited

The petitioner challenged the Order-in-Original dated 27.01.2025 issued by CGST Delhi North, which raised a tax and penalty demand of ?56,50,646 for FY 2017-18.

The petitioner submitted that the same transactions had already been assessed earlier by the Delhi GST Department in an order dated 04.12.2023, where a demand of ?1.19 crore (including ?56 lakh ITC from cancelled dealers such as RCI Industries) was raised. An appeal against that order is already pending before the State Appellate Authority.

It was argued that a second demand on the same transactions is barred under Section 6(2)(b) of the CGST Act since the matter is already under adjudication by DGST.

The CGST department contended that the DGST demand was issued under Section 73 based on return scrutiny, whereas CGST proceedings were initiated under Section 74 on allegations of fraudulent ITC, and therefore the subject matter is not identical.

After comparing both show-cause notices and orders, the Court observed that although the legal basis of action differs, the transactions and tax amount involved are the same. The petitioner has already deposited the mandatory 10% pre-deposit for the DGST appeal.

The Court held that the petitioner cannot be asked to make another pre-deposit on the same amount and allowed filing of an appeal against the CGST order under Section 107 without any additional pre-deposit.

The petitioner has been permitted to file the appeal by 31 January 2026. The appellate authority has been directed to consider it on merits without treating it as time-barred and to provide a personal hearing using the contact details shared.


Link: CA. Praveen Sharma on Linkedin

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CAPS