Full Text
HIGH COURT OF DELHI
Date of Decision: 22nd December, 2025
BHUTANI AUTOMOBILES LLP .....Petitioner
Through: (Counsel appearance not given)
Through: Mr. Nitin Saluja, SPC
JUDGMENT
1. This hearing has been done through hybrid mode. CM APPL. 81207/2025 (exemption)
2. Allowed, subject to just exceptions. Application accordingly disposed of. W.P.(C) 19476/2025 & CM APPL. 81206/2025
3. The present petition has been filed by the Petitioner - Bhutani Automobiles LLP under Article 226 of the Constitution of India, inter alia, challenging the impugned order dated 28th December, 2023 passed by the Sales Tax Officer Class II/Avato Ward 46, Zone 3, Delhi (hereinafter ‘impugned orders’), emanating from Show Cause Notice dated 25th September, 2023 (‘hereinafter, SCN’).
4. Vide the impugned order dated 28th December, 2023, the total demand against the Petitioner for Financial Year 2017-18 is raised to the following effect:
5. Additionally, the present petition also challenges the following Notifications: ● Notification No. 09/2023- Central Tax dated 31st March 2023; ● Notification No. 09/2023- State Tax dated 22nd June 2023;
6. The challenge in the present petition is similar to a batch of petitions wherein inter alia, the impugned notifications were challenged. W.P.(C) NO. 16499/2023 titled DJST Traders Private Limited v. Union of India &Ors. was the lead matter 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:
the Notification No. 56 of 2023 (State Tax) is concerned, the challenge is to the effect that the same was issued on 11th July, 2024 after the expiry of the limitation in terms of the Notification No.13 of 2022 (State Tax).
5. In fact, Notification Nos. 09 and 56 of 2023 (Central Tax) were challenged before various other High Courts. The Allahabad Court has upheld the validity of Notification no.9. The Patna High Court has upheld the validity of Notification no.56. Whereas, the Guwahati High Court has quashed Notification No. 56 of 2023 (Central Tax).
6. The Telangana High Court while not delving into the vires of the assailed notifications, made certain 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:
extended by issuing the Notifications in question under Section 168-A of the GST Act.
6. There are many other issues also arising for consideration in this matter.
7. Dr. Muralidhar pointed out that there is a cleavage of opinion amongst different High Courts of the country. 8. Issue notice on the SLP as also on the prayer for interim relief, returnable on 7-3- 2025.”
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.”
7. The abovementioned writ petition and various other writ petitions have been disposed of by this Court on subsequent dates, either remanding the matters or relegating the parties to avail of their appellate remedies, depending upon the factual situation. All such orders are subject to further orders of the Supreme Court.
8. As observed by this Court in the order dated 22nd April, 2025 as well, since the challenge to the above mentioned notification is presently under consideration before 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 challenge made by the Petitioner to the impugned notifications in the present proceedings shall also be subject to the outcome of the decision of the Supreme Court.
9. In cases where the challenge is to the parallel State Notifications, some of them 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.
10. However, on facts, the SCN was issued to the Petitioner on 25th September, 2023. The reply has been filed by the Petitioner on 24th October, 2023 and thereafter a reminder notice for personal appearance of the Petitioner dated 04th December, 2023 was issued following which the impugned order was passed on 28th December, 2023.
11. The submissions on behalf of the Respondent is that the Petitioner had waived the personal hearing.
12. The case of the Petitioner is that the GST Registration of the Petitioner was cancelled on 19th March, 2024 and the conversion certificate has been issued from a private limited company to an LLP on 24th April,
2024.
13. Heard. Perusal of the reply would show that the Petitioner had relied upon certain invoices and also confirmation letters issued in respect of the various transactions. Since the reply to the SCN has already been filed, it would be an ideal case for relegating the Petitioner to the appellate remedy.
14. Accordingly, let the Petitioner file an appeal before the Appellate Authority by 31st January, 2026 along with the necessary pre-deposit, subject to the Petitioner paying costs of Rs.10,000/-. The costs shall be deposited to the Delhi High Court Staff Welfare Fund. The bank account details are as under: • Name of Account:- Delhi High Court Staff Welfare Fund • Account No:- 15530110074442 • Bank: - UCO Bank, Delhi High Court • IFSC Code: UCBA0001553 • Branch: Delhi High Court, Shershah Road Delhi, New Delhi-
15. The access to the GST portal shall be made available to the Petitioner within one week to download any documents which he may require.
16. If the appeal is filed by 31st January, 2026 along with the pre-deposit, it shall not be treated as being barred by limitation, and shall be adjudicated on merits.
17. It is further made clear that the decision of the Appellate Authority shall be subject to 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 of this Court in W.P. (C) 9214/2024 titled Engineers India Limited v. Union of India &Ors.
18. Accordingly, the present writ petition is disposed of in above terms. Pending applications, if any, are also disposed of.
PRATHIBA M. SINGH JUDGE SHAIL JAIN JUDGE DECEMBER 22, 2025/pt/ck