The Hon’ble Delhi High Court in Gaurav Jain & Anr. v. Joint Commissioner (Appeals-II), CGST Delhi Zone & Anr. [W.P.(C) No. 8414 of 2026 dated July 31, 2026] held that the proviso to Section 107(6) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), as substituted with effect from October 01, 2025, mandating pre-deposit of ten (10%) per cent of the penalty for filing an appeal against an order demanding penalty without involving any demand of tax, does not govern an appeal arising out of adjudicatory proceedings initiated by a Show Cause Notice issued prior to October 01, 2025, and held that the right of appeal, together with the conditions governing its exercise, vests on the date of commencement of the lis, i.e., the date of issuance of the Show Cause Notice, and not on the date of the Order-in-Original or the date of filing of the appeal.
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