The petitioner, Mukesh Kumar Garg, filed a Special Leave Petition before the Supreme Court challenging the judgment and order dated 09 May 2025 passed by the Delhi High Court in W.P.(C) No. 5737/2025. The dispute arose in relation to the applicability of penal provisions under Section 122 of the Central Goods and Services Tax Act, 2017 (“the Act”).

Two principal contentions were raised before the Court. First, the petitioner argued that Section 122(1) of the CGST Act was inapplicable to him as he was a non-taxable person and therefore not liable under that provision. Second, it was contended that Section 122(1A) of the Act, which came into force on 1 January 2021, could not be applied retrospectively to assessment years 2017–2020.

The Supreme Court granted leave to appeal. Pending disposal of the matter, the Court ordered a stay on recovery of the amount directed to be deposited, subject to the condition that the petitioner deposits 25% of the demand before the GST Department, either through the electronic ledger or cash ledger.