Shri Krishna Industries Through It Proprietor Prop Mohan Lal vs. Commissioner Of Central Goods And Services Tax And Ors
Held
The High Court held that the Central GST proceedings under Section 74 were not barred by Section 6(2)(b) of the CGST Act, as they concerned different allegations and were not on the 'same subject matter' as the earlier State GST proceedings under Section 73. The Court dismissed the writ petition, directing the petitioner to avail the efficacious statutory remedy of appeal under Section 107 of the CGST Act for examining factual disputes and merits.
Facts
The petitioner, engaged in manufacturing plastic products, availed Input Tax Credit (ITC) from M.R. Enterprises. State GST authorities initiated proceedings under Section 73 of the CGST Act for alleged inadmissible ITC, culminating in an order dated 29.07.2024. Subsequently, Central GST authorities issued two Show Cause Notices under Section 74 of the CGST Act for alleged fraudulent ITC from M.R. Enterprises, leading to orders confirming demand, interest, and penalty.
Key Issues
The primary issue was whether Central GST proceedings under Section 74 were barred by Section 6(2)(b) due to prior State GST proceedings under Section 73 concerning the same assessee and ITC. The Court also considered the maintainability of the writ petition given the availability of an alternative statutory appeal remedy.
Sections Cited
Section 74, Section 73, Section 6(2)(b), Section 75(3), Section 107, Section 16
AI-generated summary — verify with the full judgment below
W.P.(C) 4897/2025 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI %
Judgment reserved on: 07.08.2026 Judgment pronounced on: 18.09.2026
Judgment uploaded on: 18.09.2026 # CNR No. DLHC010211512025 + W.P.(C) 4897/2025 and CM APPL. 22525/2025 SHRI KRISHNA INDUSTRIES THROUGH IT PROPRIETOR PROP MOHAN LAL
.....Petitioner Through: Mr. Rakesh Kumar, Adv.
versus
COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX AND ORS.
.....Respondents Through: Ms. Monica Benjamin, SSC with Ms. Laiba Arif, Ms. Prerika Narang, Advs.
CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MS. JUSTICE SHAIL JAIN J U D G M E N T ANIL KSHETARPAL, J.:
The issue which arises for consideration in the present Petition is whether the proceedings initiated by the Central Goods and Services Tax authorities under Section 74 of the Central Goods and Services Tax Act, 2017 [“CGST Act”] are liable to be interdicted on the ground that the State Goods and Se
The judgment continues below.
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