Full Text
HIGH COURT OF DELHI
Date of Decision: 7th May, 2025
B R CERAMICS P LIMITED THROUGH ITS DIRECTOR AMIT
GUPTA .....Petitioner
Through: Mr. Ujjwal Jain, Advocate.
Through: Ms. Vaishali Gupta, Panel Counsel (Civil) for GNCTD.
Mr. Ajit Kumar Pathak (S.P.C.) along
Advocates for R-3.
Ms. Monica Benjamin, SSC
Prathiba M. Singh, J. (Oral)
JUDGMENT
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner – B R Ceramics Pvt. Limited through its Director Amit Gupta under Article 226 and 227 of the Constitution of India, inter alia, challenging the Show Cause Notice dated 28th May, 2024, as also consequent demand order dated dated 30th August, 2024 (hereinafter, ‘impugned order’) passed by Respondent No.2 - Sales Tax Officer Class II/AVATO, Ward 45, Zone 3, Delhi.
3. The petition also challenges the vires of Notifications Nos. 09/2023- Central Tax dated 31st March, 2023, 56/2023-Central Tax dated 28th December, 2023, 09/2023-State Tax dated 22nd June, 2023 and 56/2023-State Tax dated 11th July, 2024 (hereinafter, ‘impugned notification’).
4. The validity of the impugned notifications was under consideration before this Court in a batch of petitions with the lead petition being W.P.(C) 16499/2023 titled ‘DJST Traders Pvt. Ltd. vs. Union of India and Ors.’. In the said batch of petitions, on 22nd April, 2025, the parties were heard at length qua the validity of the impugned notifications and accordingly, the following order was passed:
observations in respect of invalidity of Notification NO. 56 of 2023 (Central Tax). This judgment of the Telangana High Court is now presently under consideration by the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. The Supreme Court vide order dated 21st February, 2025, passed the following order in the said case:
7. In the meantime, the challenges were also pending before the Bombay High Court and the Punjab and Haryana High Court. In the Punjab and Haryana High Court vide order dated 12th March, 2025, all the writ petitions have been disposed of in terms of the interim orders passed therein. The operative portion of the said order reads as under:
8. The Court has heard ld. Counsels for the parties for a substantial period today. A perusal of the above would show that various High Courts have taken a view and the matter is squarely now pending before the Supreme Court.
9. Apart from the challenge to the notifications itself, various counsels submit that even if the same are upheld, they would still pray for relief for the parties as the Petitioners have been unable to file replies due to several reasons and were unable to avail of personal hearings in most cases. In effect therefore in most cases the adjudication orders are passed ex-parte. Huge demands have been raised and even penalties have been imposed.
10. Broadly, there are six categories of cases which are pending before this Court. While the issue concerning the validity of the impugned notifications is presently under consideration before the Supreme Court, this Court is of the prima facie view that, depending upon the categories of petitions, orders can be passed affording an opportunity to the Petitioners to place their stand before the adjudicating authority. In some cases, proceedings including appellate remedies may be permitted to be pursued by the Petitioners, without delving into the question of the validity of the said notifications at this stage.
11. The said categories and proposed reliefs have been broadly put to the parties today. They may seek instructions and revert by tomorrow i.e., 23rd April, 2025.”
5. Thereafter, on 23rd April, 2025, this Court, having noted that the validity of the impugned notifications is under consideration before the Supreme Court, had disposed of several matters in the said batch of petitions after addressing other factual issues raised in the respective petitions. Additionally, while disposing of the said petitions, this Court clearly observed that the validity of the impugned notifications therein shall be subject to the outcome of the proceedings before the Supreme Court.
6. However, in cases where the challenge is to the parallel State Notifications, the same have been retained for consideration by this Court. The lead matter in the said batch is W.P.(C) 9214/2024 titled Engineers India Limited v. Union of India & Ors.
7. On facts, however, a reply was filed by the Petitioner to the Show Cause Notice dated 28th May 2024 and the same was duly considered by the Adjudicating Authority.
8. Ld. Counsel for the Petitioner submits that an appeal had already been filed in this matter challenging the impugned order. Accordingly, the appeal shall be considered on merits and shall not be dismissed on the ground of limitation.
9. In view of the above, the impugned order is set aside. After hearing the Petitioner, the order shall be passed by the Appellate Authority in accordance with law.
10. However, it is made clear that the issue in respect of the validity of the impugned notifications is left open. Any order passed by the Appellate Authority shall be subject to the outcome of the decision of the Supreme Court in S.L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors and the decision in W.P.(C) 9214/2024 titled Engineers India Limited v. Union of India & Ors.
11. Petition is disposed of in these terms. All pending applications are also disposed of.
PRATHIBA M. SINGH JUDGE RAJNEESH KUMAR GUPTA JUDGE MAY 7, 2025/nd/ck (corrected & released on 13th May, 2025)