Case Name: Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II), CGST Delhi Zone & Anr.
Court: Delhi High Court
Judgment Date: 31 July 2025
The Delhi High Court has clarified that the amended requirement of a 10% pre-deposit of penalty under Section 107(6) of the CGST Act cannot be applied retrospectively. The Court held that the right to file an appeal is a vested substantive right that arises when the Show Cause Notice (SCN) is issued. Therefore, if the SCN was issued before 1 October 2025, the amended pre-deposit condition will not apply even if the adjudication order is passed after that date.
Practical Timeline
Scenario 1
- SCN Issued: 20 September 2025
- Order-in-Original: 15 November 2025
- Appeal Filed: 10 December 2025
Result: The amended 10% penalty pre-deposit requirement will not apply because the proceedings commenced before 1 October 2025.
Scenario 2
- SCN Issued: 15 October 2025
- Order-in-Original: 20 December 2025
- Appeal Filed: 5 January 2026
Result: The amended 10% penalty pre-deposit requirement will apply because the proceedings commenced after the amendment came into force.
Key Takeaway
The date of issuance of the Show Cause Notice (SCN) is crucial for determining the applicability of the amended pre-deposit provision. Where the SCN was issued before 1 October 2025, the amended requirement cannot ordinarily be applied retrospectively.
Disclaimer: This article is intended solely for educational and informational purposes. It is based on the author’s understanding of the judgment in Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II), CGST Delhi Zone & Anr. and the applicable provisions of the CGST Act. The content should not be construed as legal or professional advice. Readers are advised to refer to the complete judgment and consult a qualified tax professional before taking any action. The applicability of the judgment may vary depending on the facts of each case and future judicial or legislative developments.