2025 (12) TMI 438

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....8204/2025 & CMAPPL. 75277/2025 (for stay) 3. The present petition, inter alia, raises a challenge to the Order-in-Original dated 22nd October, 2025 by which a demand to the tune of Rs.9,60,15,714/- crores has been confirmed against the Petitioner in respect of fake ITC, which is passed on/availed by the Petitioner. 4. There are various allegations in the petition against one Mr. Parag Garg who is stated to be the master mind of the operation and involved in incorporation of several firms and non-existent entities only to avail/pass on the Input Tax Credits (hereinafter "ITC"). Shri Parag Garg, who is the partner of the Petitioner firm, has in fact filed the present petition as well. 5. The Petitioner was engaged in the business of ....

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....icee No. I, under Section 74(1) of the CGST Act, 2017 read with Section 122 of CGST Act, 2017, read with relevant provisions of the SGST Act 2017 and Section 20 of the IGST Act, 2017, for their various acts of omission and commission as discussed supra. (iv) I refrain from imposing any another penalty on the Noticee No. 1 as Section 75 (13) of the CGST Act, 2017 clearly states that Where any penalty is imposed under section 73 or section 74 [or section 74A], no penalty for the same act or omission shall be imposed on the same person under any other provision of this Act. (v) I order appropriation of Rs. 1,66,00,000/- paid vide DRC03 by the Noticee No. 1 during the investigation against the proposed demand. (vi) I ....

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....e No.     2018-19 2019-20     GSTIN Trade Name CGST SGST CGST SGST TOTAL TAX (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Noticee No. 3 07ABFPM9412LIZD SHREE GANESH TRADING - - 86,72,340 86,72,340 1,73,44,680 Noticee No. 4 07AHXPG112ICIZQ Sri Sai Enterprises - - 69,99,497 69.99,497 1,39,98,994 Noticee No. 5 07AAOPG8400EIZX SATYAM ASSOCIATE 26,64,016 26,64,016 36,42,391 36,42,391 1,26,12,814 Noticee No. 6 07EGJPP4852CIZ9 M/s RAJ ENTERPRISES 39,71,347 39,71,347 - - 79,42,695 Noticee No. 7 07JXSPS3711JIZQ M/s Krishna Traders 34,54,402 34,54,402 ....

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....us acts of omission and commission as discussed supra. (xi) I impose and order for recovery of penalty equivalent to Rs. 50,000/- (CGST-Rs. 25,000/- and SGST-Rs. 25,000/- ) from the Noticee 18, under section 122(3)(a) of CGST Act, 2017, read with relevant provisions of the SGST Act 2017 and Section 20 of the IGST Act, 2017, for their various acts of omission and commission as discussed supra. (xii) The noticees are hereby informed that in terms of the Section 74(11) of the CGST Act, 2017 read with State GST Act, 2017, Where any person served with an order issued under sub-section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent of such tax within thirty days o....

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....W.P.(C) 17220/2025 (decided on 13th November, 2025), the Coordinate Bench of this Court under similar circumstances, considering the challenge to Rule 142(1A) of the 2017 Rules, had noticed that in view of the amendment vide the Notification No. 79/2022-Central Tax, the pre-SCN consultation notice cannot be held to be mandatory in nature. 10. The Court has heard the parties. The amended Rule 142(1A) of 2017 Rules reads as under: "(1A) The proper officer may before service of Notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74 or sub-section (1) of section 74, as the case may be, communicate the details of any tax, interest and penalty as ascertained....