Pvcon Engineering Co. Vs CGST And Central Excise (Supreme Court of India)
Pre-Deposit on Penalty Order Cannot Be Demanded Merely Because the GSTAT Appeal Is Filed After October 01, 2025 and Question of Jurisdiction kept open for adjudication proceedings U/S 122
Summary: The Hon’ble Supreme Court in M/s PVCON Engineering Co. v. CGST and Central Excise, Bhopal & Ors. [SLP (Civil) No. 28059 of 2026 dated September 07, 2026] issued notice on whether the mandatory pre-deposit for an appeal before the Goods and Services Tax Appellate Tribunal (“the GSTAT”) in penalty-only matters, introduced with effect from October 01, 2025, is to be determined with reference to the date of issuance of the Show Cause Notice or the date of filing of the appeal. In the meanwhile, the Court permitted the assessee to file its appeal before the GSTAT without pre-deposit, subject to the outcome of the petition. The matter arose from the judgment of the Hon’ble Madhya Pradesh High Court in M/s PVCON Engineering v. CGST and Central Excise Bhopal and Others [Writ Petition No. 24931 of 2026 dated July 06, 2026], which had relegated the assessee to the GSTAT. The assessee had received a penalty-only Order-in-Original dated October 03, 2024 pursuant to a Show Cause Notice dated July 26, 2024. Its appeal under Section 107 was dismissed on limitation. Before the Supreme Court, the assessee contended that the amended pre-deposit requirement could not apply to proceedings initiated before October 01, 2025 and also challenged the jurisdiction of the DGGI officer who issued the Show Cause Notice. The Supreme Court held that the question required consideration, issued notice, permitted the GSTAT appeal without pre-deposit subject to the petition’s outcome, and tagged the matter with SLP (Civil) Diary No. 28833 of 2026 involving the same issue.
