GST Update

 Desk of CA. Praveen Sharma – 1117  Series (CAPS) 

Delhi High Court IN THE CASE OF  M/s Siwon Enterprises Pvt. Ltd.v. Union of India

Company in lead petition: M/s Siwon Enterprises Pvt. Ltd.

 Dispute: Petitioners challenged Section 122 penalties, officer competence, procedural fairness and appellate pre-deposit requirements.

 Company involved: Siwon Enterprises Pvt. Ltd., trading in TMT bars and steel products, was the petitioner in the designated lead matter. 

Amendment: The substituted Section 107(6) proviso introduced a 10% penalty pre-deposit for penalty-only appeals from 1 October 2025.

SCN date governs: Following Gaurav Jain, the Court held that appeals arising from earlier SCNs remain governed by the pre-amendment provision.

 Later order immaterial: Passing the adjudication order after 1 October 2025 does not, by itself, attract the amended requirement.

Taxpayer relief: Such appeals cannot be rejected merely for non-compliance with the newly introduced penalty pre-deposit.

Jurisdiction objection: The officer-competence challenge disclosed no patent absence of jurisdiction warranting writ interference.

 Statutory appeal directed: Petitioners could raise factual, procedural and legal objections before the appellate authority; merits remained open.

Why in favour of both: Petitioners obtained pre-deposit protection, while Revenue succeeded in having the substantive challenges routed through statutory appeals.

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Best Regards,

CA Praveen Sharma

Mob. No. +91-98715 30610