Agrawal Metal Works Private Limited vs. Principal Commissioner Of Customs Icd Patparganj Delhi

W.P.(C)/18087/2025HC DelhiGSTCNR DLHC01094977202507 September 2026Bench: HON'BLE MR. JUSTICE SHAIL JAIN,HON'BLE MR. JUSTICE ANIL KSHETARPAL2 pages

For Petitioner: Mr. Sandeep Mishra, Mr. Ranjan Mehta, Ms. Chitra Chanda, AdvsFor Respondent: Mr. Arjun Malik, SSC-CBIC

AI SummaryAllowed

Held

The Court held that the Show Cause Notice could not be sustained as it was issued after Rule 96(10) of the CGST Rules had been omitted. The omission of the rule, without a saving clause, meant proceedings under it could not continue, and fresh proceedings could not be initiated.

Facts

The petitioner challenged a Show Cause Notice proposing recovery of IGST refund. The notice was issued under Section 28(4) of the Customs Act, 1962, for contravening Rule 96(10) of the CGST Rules, 2017.

Key Issues

Whether a Show Cause Notice issued for contravention of a rule that has been omitted can be sustained. Whether proceedings can be initiated or continued under a rule that has been omitted without a saving clause.

Sections Cited

Section 28(4), Rule 96(10)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~27 * IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010949772025 + W.P.(C) 18087/2025 and CM APPL. 74845/2025 AGRAWAL METAL WORKS PRIVATE LIMITED .....Petitioner Through: Mr. Sandeep Mishra, Mr. Ranjan Mehta, Ms. Chitra Chanda, Advs. versus PRINCIPAL COMMISSIONER OF CUSTOMS ICD PATPARGANJ DELHI .....Respondent Through: Mr. Arjun Malik, SSC-CBIC. CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MS. JUSTICE SHAIL JAIN

O R D E R % 07.09.2026

Through the present Writ Petition, the Petitioner challenges the Show Cause Notice dated 14.10.2025 issued under Section 28(4) of the Customs Act, 1962, whereby recovery of IGST refund amounting to ₹4,77,87,866/- has been proposed on the ground that the Petitioner had contravened Rule 96(10) of the Central Goods and Services Tax Rules, 2017. 2. Rule 96(10) of the CGST Rules stood omitted with effect from 08.10.2024. The Supreme Court in M/s Goodluck India Limited & Anr. v. Union of India & Ors.; 2026 INSC 821, has held that, upon omission of Rule 96(10) without any saving clause, proceedings pending under the said Rule could not be continued and the benefit of the omission would inure to assessees in all such pending proceedings. Th

The judgment continues below.

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