Prem Chand Gupta vs. Additional Commissioner CGST Delhi West Commissionerate & Ors. - Delhi High Court, 13 August 2026

W.P.(C) 2704/2025 and connected matters Page 1 of 12 $~ * 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 Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 2 of 12 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

Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 3 of 12 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. Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 4 of 12

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. Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 5 of 12 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. Prerika Narang, Advs.

# CNR No. DLHC010617122025 + W.P.(C) 13065/2025 and CM APPL. 53535/2025

AMIT 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.

CORAM:

HON'BLE MR. JUSTICE ANIL KSHETARPAL

HON'BLE MS. JUSTICE SHAIL JAIN J U D G M E N T ANIL KSHETARPAL, J.:

By 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 Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 6 of 12 „CGST Act], read with the corresponding provisions of the State/Union Territory enactments and the Integrated Goods and Services Tax Act, 2017 upon them.

The 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.

The 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.

Insofar 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.

By the Impugned Order, each of the Petitioners has been subjected to a penalty equivalent to the amount mentioned against his Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 7 of 12 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) 1 Rajeev Gupta, MD M/s RCI Industries and Technolog ies 07AAAC R5727Q2 ZT 64655 2730 64655 2730 54380 2085 18369 07545

2 Rajeev Gupta, MD M/s RCI Industries and Technolog ies 08AAAC R5727QI ZS 71477 562 71477 562 16358 6373 30654 1497

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

6 Anil Kumar Jain, Director M/s Grimus Exports Pvt. Ltd. 90375 077 90375 077 0 18075 0154

16 Arun Kumar Jain, MD M/s B.C. Power Controls Ltd. 07AADC B4984A1 ZV 30198 6227 30198 6227 0 60397 2454

17 Arun Kumar Jain, MD M/s B.C. Power Controls Ltd. 08AADC R4984A1 ZT 84645 46 84645 46 12979 402 29908 494

18 Arun Kumar Jain, MD M/s. Smita Global Pvt. Ltd. 46044 155 46044 155 35606 893 12769 5203

22 Arun Sharma, MD M/s Varun Foils Limited 29977 38 29977 38 45591 740 51587 216 25000 00 25000 00

23 Prem Chand Gupta, Director M/s. Prominent Metal 85601 44 85601 44 0 17120 288

Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 8 of 12 Private Ltd. 26 Anil Kumar Jain, Real Incharge M/s. Skyway Ventures Pvt. Ltd.

20780 384 20780 384 15406 165 56966 933

51 Amit Gupta, Director M/s. Progressiv e Alloys (India) Pvt. Ltd. 21151 69 21151 69 0 42303 38

61 Vinay Mittal, Director M/s AVA Resources Pvt. Ltd 23350 69 23350 69 0 46701 38

65 Ravi Aggarwal, Director M/s. Agsons Agencies (I) Pvt Ltd 48827 79 48827 79 0 97655 58

67 Arun Kumar Jain, MD M/s Bonlon Steels Pvt. Ltd. 07AAAC B6473H1 ZO 72980 127 72980 127 16716 641 16267 6895

68 Arun Kumar Jain, MD M/s. Bonlon Steels Pvt. Ltd. 08AAAC B6473H1 ZM 0 0 64040 089 64040 089

69 Prem Chand Gupta, Director M/s. Oyster Steel & Iron Pvt. Ltd 37088 728 37088 728 0 74177 456

70 Prem Chand Gupta, Director M/s. Worldwid e Metal Private Ltd. 69502 94 69502 94 0 13900 588

71 Prem Chand Gupta, Director M/s. Olympus Metal Pvt. Ltd. 41801 38 41801 38 0 83602 76

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

The 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. Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 9 of 12 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.

Learned 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.

The 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. 2. Leave granted.

In 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.”

10.

It 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.

11.

During the pendency of the present Writ Petitions, this Court Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 10 of 12 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.

12.

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

13.

The 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.

14.

The 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. Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 11 of 12

15.

In 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. Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified

W.P.(C) 2704/2025 and connected matters Page 12 of 12 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.

16.

It 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

Signed By:JAI NARAYAN Signing Date:13.08.2026 12:48:40 Signature Not Verified