Spherion Solutions Private Limited Vs Additional Commissioner Adjudication CGST (Delhi High Court)
Summary: The Delhi High Court considered a writ petition filed by Spherion Solutions Private Limited seeking rectification of the summary order in FORM GST DRC-07 dated 09.12.2025, issued pursuant to an Order-in-Original dated 25.11.2025, and a direction permitting appropriation of ₹3,33,257/- from input tax credit blocked in its Electronic Credit Ledger towards the mandatory pre-deposit required for filing an appeal under Section 107(6) of the Central Goods and Services Tax Act, 2017.
The Petitioner, a company registered under the CGST Act in Haryana, had been investigated by the Directorate General of GST Intelligence, Gurugram Zonal Unit, in connection with alleged invoices issued by M/s Crimson International Private Ltd. without corresponding supply of goods or services. The Adjudicating Authority confirmed IGST demands of ₹10,40,472/- for Financial Year 2020-21 and ₹22,92,096/- for Financial Year 2021-22, together with interest and equivalent penalty, aggregating to a tax demand of ₹33,32,568/-. The Petitioner intended to challenge the OIO by filing an appeal under Section 107.
The summary of the OIO uploaded in FORM GST DRC-07, however, incorrectly reflected the aggregate amount of ₹66,65,136/- under the head of penalty and referred to Financial Year 2018-19, although the demand related to Financial Years 2020-21 and 2021-22. When the Petitioner attempted to file an appeal on 24.02.2026, the GST portal consequently calculated the mandatory pre-deposit at ₹6,66,514/- instead of ₹3,33,257/-. Attempts to seek rectification through the portal were unsuccessful because of a technical error, following which the Petitioner lodged a grievance with GSTN.
