A And T Security Services Pvt Ltd Vs ADDL Commissioner of CGST (Delhi High Court)
The petitioner, engaged in providing security services and registered under GST, was issued a show-cause notice (SCN) in September 2019 for non-filing of returns. Although the petitioner claimed to have filed all returns and sought withdrawal of the SCN, the department cancelled its GST registration in November 2019 with zero demand. On appeal, the Appellate Commissioner restored the registration in August 2021 on the condition that all pending returns and liabilities be cleared. The petitioner states it subsequently paid ₹2,01,20,299, after which its registration was restored.
In July 2024, a fresh SCN alleging fraudulent ITC availment was issued, followed by an order-in-original in January 2025 imposing penalty under Section 122. The Commissioner (Appeals) confirmed penalties on 16 May 2025. The petitioner argued before the High Court that the appellate authority failed to consider the earlier deposit of over ₹2.01 crore. The respondent acknowledged that this aspect was not examined in the impugned order.
The Court found that both adjudicating and appellate authorities had not considered the significant payments already made, amounting to a lapse in adjudication. Given that the GST Appellate Tribunal has been constituted, the petitioner was directed to file an appeal there. The Tribunal is to consider the documents showing prior payments and reassess penalties, including those on directors, in light of Section 73. The petitioner was allowed to file the appeal without any further pre-deposit, by 25 December 202
