Marginmart Ifosystems (P.) Ltd. v. Assistant Commissioncr CGST
In favour of the revenue
The ruling in brief
Marginmart Ifosystems (P) Ltd. filed an Article 226 writ before the High Court of Delhi (decided 9 July 2026) against penalty proceedings for issuing tax invoices without actual supply and wrongful availment of input tax credit, after investigation found the purported recipient entity non-existent. The company raised jurisdiction and procedural grounds at the threshold. The court noted an effective statutory remedy under Section 107 to challenge the penalty order on merits and on jurisdictional questions, with Section 126 governing mitigating circumstances at adjudication. Writ jurisdiction was not exercised at this stage; the petitioner was directed to pursue appeal, leaving all issues open for the Appellate Authority. The outcome favoured the revenue on maintainability rather than on substantive penalty merits. This editorial summary is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.122 — Penalty for certain offences under GST.
- CGST S.126 — Section 126 of the Central Goods and Services Tax Act, 2017.
- Constitution Art.226 — High Court writ jurisdiction for enforcement of rights and other purposes.
Source documents
Similar rulings
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