M/S Keshav Sales Corporation Thorugh Proprietor Lalit Bansal vs. Union Of INDIA & Ors.
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Cause title — parties, addresses and appearances
O R D E R % 27.07.2026
On 13.07.2026, the following order was passed:
“1. On 08.07.2026, the following order was passed:
“1. The present writ petition has been filed under Article 226 of the Constitution of India, inter alia, assailing Show Cause Notice No.25/2024-25 dated 19.07.2024, Order-in-Original No. 274/CGST WEST/GST/SKG/ADC/2024-25 dated 03.02.2025 passed by the Additional Commissioner, CGST Delhi West, and Order-in-Appeal No. 95/2026-27 dated 13.05.2026 passed by the Commissioner (Appeals-II), Delhi, to the extent they impose and confirm a penalty of Rs. 1,99,82,402/- upon the petitioner under Section 122(1)(ii) of the Central Goods and Services Tax Act, 2017. 2. Learned counsel appearing on behalf of the petitioner submits that a common Show Cause Notice was issued to the petitioner, M/s North India Steel Tubes and M/s Destiny Steel. He submits that, insofar as the petitioner is concerned, the Show Cause Notice proposed imposition of penalty under Section 122(1)(ii) of the Central Goods and Services Tax Act, 2017. 3. It is further submitted that the proceedings initiated against M/s North India Steel Tubes and M/s Destiny Steel have been dropped pursuant to the Order-in-Appeal. However, the impugned order has been passed against the present petitioner.
It is submitted that, once the proceedings against M/s North India Steel Tubes and M/s Destiny Steel have been dropped, the proceedings This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 15:13:21
against the present petitioner, arising out of the same Show Cause Notice, cannot be permitted to continue.
Learned counsel appearing on behalf of the respondent seeks time to obtain complete instructions before assisting the Court.
List for final disposal on 13.07.2026 in the ‘supplementary list’.”
Learned counsel representing the Respondents submits that the Order-in-Appeal, whereby the proceedings against M/s North India Steel Tubes [‘NIST’] and M/s Destiny Steel were dropped, is proposed to be challenged before the Goods and Services Tax Appellate Tribunal [‘GSTAT’]. It is submitted that permission to prefer such an appeal has already been granted by the Commissioner, Central Goods and Services Tax, Delhi West, vide order dated 03.07.2026. 3. Learned counsel representing the Petitioner, while placing reliance upon Explanation 1(ii) to Section 74(12) of the Central Goods and Services Tax Act, 2017 [‘CGST Act’], submits that where a notice in the same proceedings has been issued to the main person liable to pay tax as well as to other persons, and the proceedings against the main person have been concluded under Section 73 or Section 74 of the Act, the proceedings against all other persons liable to penalty under Sections 122 and 125 are deemed to have been concluded. It is, therefore, submitted that once the proceedings against M/s North India Steel Tubes and M/s Destiny Steel have been concluded pursuant to the Order-in-Appeal, the proceedings against the present Petitioner are also liable to be treated as concluded.
Prima-facie, this Court is not persuaded to accept the aforesaid submission at this stage, particularly in view of the fact that the Department has already taken steps to challenge the Order-in- Appeal before the GSTAT pursuant to the permission granted by the competent authority.
List on 27.07.2026 for further consideration in the “Supplementary List”.”
Learned counsel representing the Respondents submits that the Department has since filed an Appeal before the Goods and Services Tax Appellate Tribunal [hereinafter referred to as ‘GSTAT’] against the Order-in-Appeal whereby the proceedings against M/s North India Steel Tubes and M/s Destiny Steel were dropped.
Learned counsel representing the Petitioner, while referring to Explanation 1(ii) of Section 74(12) of the Central Goods and Services Tax Act, 2017 submits that the proceedings against the Petitioner shall This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 15:13:21
be deemed to have been concluded on 31.12.2025. 4. Having considered the submissions, this Court is of the view that the Petitioner has an efficacious statutory remedy of Appeal before the GSTAT. The Appeal preferred by the Department is also pending before the GSTAT. It would, therefore, be appropriate for the GSTAT to consider the connected issues in accordance with law.
At this stage, particularly in view of the statutory remedy of Appeal as also pendency of the Appeal filed by the Department, this Court is not inclined to exercise its writ juri iction. However, it is clarified that this Court has not expressed any opinion on the merits of the rival contentions. The GSTAT shall consider the entire matter uninfluenced by the prima facie observations contained in the order dated 13.07.2026. 6. Keeping in view the aforesaid, the present Petition, along with the pending application, is disposed of. ANIL KSHETARPAL, J. SHAIL JAIN, J. JULY 27, 2026 s.godara/ad This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 15:13:21
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