GST Update

 Desk of CA. Praveen Sharma – 1112  Series (CAPS) 

 Delhi High Court IN THE CASE OF  M/s A.G. Enterprises v. Union of India 

Citation: TS-831-HC(DEL)-2026-GST

Dispute: A.G. Enterprises challenged Central GST proceedings demanding ?47,93,104 ITC, with interest and penalty.

Petitioner’s objection: Earlier State GST proceedings involved the same supplier, M/s ASA Nand Nathu Ram therefore, Section 6(2)(b) allegedly barred Central action.

Core finding: A common supplier alone does not establish same subject matter.

Required comparison: Authorities must examine tax periods, invoices, transactions, precise ITC amounts, allegations and liabilities. 

 Sections 73 and 74: Different statutory provisions alone neither establish nor negate identity of subject matter.

Supreme Court precedent: The Court relied on Armour Security (India) Ltd., emphasising identification of the particular liability or contravention.

Chronology matters: Later State proceedings cannot retrospectively invalidate earlier Central proceedings.

 Appellate examination: Disputes about evidence, hearing, limitation, ITC eligibility and fraud required examination through the statutory appeal.

 Outcome: In favour of Revenue—the writ petition was dismissed. The Court left all merits, including transaction-specific Section 6(2)(b) objections, open for independent appellate consideration.

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CA Praveen Sharma

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