M/S Army Welfare Housing Organisation vs. Union Of INDIA & Ors.

W.P.(C)/13260/2024HC DelhiGSTCNR DLHC01062967202422 December 2025Bench: HON'BLE MS. JUSTICE PRATHIBA M. SINGH,HON'BLE MR. JUSTICE SHAIL JAIN15 pages

For Petitioner: Mr. V. Lakshmikumaran, Mr. L. Badri Narayanan, Mr. Charanya Lakshmikumara, Mr. Yogendra Aldak, Mr. Kunal Kapoor, AdvsFor Respondent: Mr. Shubham Tyagi, SSC. Ms. Rupali Bandhopadhya, CGSC with Mr. Abhijeet Kumar, Ms. Amisha Gupta and Mr. Amit Peswani, Advs

AI SummaryAllowed

Held

The High Court held that CENVAT credit transitioned under Section 140 of the CGST Act can be utilized for pre-deposit through DRC-03. The Court reasoned that Rule 142(3) permits payment of tax, interest, or penalty via DRC-03, and pre-deposit falls under this category.

Facts

The petitioner sought to use CENVAT credit transitioned into their GST electronic credit ledger for pre-deposit in an appeal before CESTAT. CESTAT had dismissed the appeal, stating that pre-deposit could not be made using DRC-03, citing previous rulings and a CBIC circular.

Key Issues

Whether transitioned CENVAT credit can be used for pre-deposit in appeals under the GST regime via DRC-03. Whether the CBIC circular barring such use is applicable.

Sections Cited

Section 140, Rule 142(3), Section 73, Section 74, Section 35F

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

W.P.(C) 13260/2024 Page 1 of 15 $~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision:22ndDecember, 2025 Uploaded on: 26thDecember, 2025 + W.P.(C) 13260/2024 & CM APPL. 55400/2024 M/S ARMY WELFARE HOUSING ORGANISATION .....Petitioner Through: Mr. V. Lakshmikumaran, Mr. L. Badri Narayanan, Mr. Charanya Lakshmikumara, Mr. Yogendra Aldak, Mr. Kunal Kapoor, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Shubham Tyagi, SSC. Ms. Rupali Bandhopadhya, CGSC with Mr. Abhijeet Kumar, Ms. Amisha Gupta and Mr. Amit Peswani, Advs. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN

JUDGMENT Prathiba M. Singh, J.

This hearing has been done through hybrid mode.

The short question that has arisen for consideration in this case is whether CENVAT Credit, which was lying in the account of the Petitioner prior to the coming into effect of the GST regime i.e. prior to 1st July, 2017, and was transitioned into the electronic credit ledger of the Petitioner after the GS

The judgment continues below.

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