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HIGH COURT OF DELHI
Date of Decision: 19th May, 2025
JCO GAS PIPE LIMITED .....Petitioner
Through: Mr. Rajeev Aggarwal, Advocate.
DELHI .....Respondent
Through: Mr. Sumit L. Batra, Advocate for GNCTD (Mob. 9911211000).
Prathiba M. Singh, J. (Oral)
JUDGMENT
1. This hearing has been done through hybrid mode. CM APPL. _______/2025 (to be numbered)
2. An amendment application has been moved in this matter seeking to add a challenge to Notification No. 09/2023-Central Tax dated 31st March, 2023 and Notification No. 9/2023-State Tax dated 22nd June, 2023.
3. Considering the nature of the application, the same is allowed, leaving all the objections open. The amendment is taken on record. W.P.(C) 5937/2025 & CM APPLs. 27079/2025, 27080/2025
4. The present writ petition has been filed by the Petitioner under Article 226 and 227 of the Constitution of India inter alia challenging the order dated 28th December, 2023 (hereinafter ‘impugned order’) and Show Cause Notice dated 25th September, 2023 (hereinafter ‘impugned SCN’).
5. Additionally, the petition also challenges the vires of Notification NO. 09/2023-Central Tax dated 31st March, 2023 and Notification No. 9/2023- State Tax dated 22nd June, 2023 (hereinafter ‘impugned notifications’).
6. The impugned notifications were under consideration before this Court in a batch of matters with the lead matter 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:
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:
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:
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 exparte. 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. 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.
8. 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’.
9. On facts, however, the submission of the Petitioner is that though a detailed reply was filed by the Petitioner, the same was not duly considered by Respondent No.1-Sales Tax Officer Class II/AVATO, Ward 91, Zone 8, Delhi. It is further contended that the impugned order is cryptic and nonspeaking, and that it was uploaded only in the ‘Additional Notices tab’. According to the Petitioner, these aspects cumulatively amount to a violation of the Principles of Natural Justice, rendering the impugned order liable to be set aside.
10. Heard. The Court has also perused the records. It is noticed that the reply has been filed on 21st October, 2023 and the personal hearing is also duly provided. It is further noticed that upon consideration of the reply filed, one of the demands has also been dropped by the Respondent-GST Department. The relevant portion of the impugned order is extracted below:
11. Perusal of the above extract reveals that the order is sufficiently reasoned and has duly considered the reply filed by the Petitioner. Considering the fact that the reply filed has been duly considered and the fact that the impugned order is appealable under Section 107 of the Central Goods and Services Act, 2017, this Court is of the opinion that the impugned order does not warrant interference under writ jurisdiction.
12. However, considering the fact that the impugned order has been uploaded on the ‘Additional Notices Tab’ and that challenge to the validity of the impugned notifications is pending before the Supreme Court, as also this Court, the Petitioner is allowed to file an appeal by 15th July, 2025. If the same is filed within the stipulated time, the concerned Appellate Authority shall not dismiss the appeal on the grounds of limitation and shall hear it on merits.
13. All the rights and remedies of the parties are left open. Access to the GST Portal, if not already available, shall be ensured to be provided to the Petitioner to enable access to the notices and related documents.
14. However, it is made clear that the issue in respect of the validity of the impugned notifications is left open and the order of the Appellate Authority shall be subject to the outcome of the decision of
(i) the Supreme Court in S.L.P No 4240/2025 titled ‘M/s HCC-
(ii) this Court in W.P.(C) 9214/2024 titled ‘Engineers India Limited v. Union of India & Ors’
15. Accordingly, the present writ petition is disposed of. All the pending applications, if any, are also disposed of.
PRATHIBA M. SINGH JUDGE RAJNEESH KUMAR GUPTA JUDGE MAY 19, 2025/MR/Ar.