Chauhan Kirana Trading Vs Government of NCT of Delhi (Delhi High Court)
The petitioner challenged an order dated 5 April 2024 issued by the Sales Tax Officer for the period April 2018 to March 2019, raising a demand of ₹11,98,884. The petitioner also challenged a Show Cause Notice (SCN) issued on 27 December 2023 and questioned the validity of two notifications: Notification No. 56/2023-Central Tax and Notification No. 56/2023-State Tax. These notifications form part of a wider set of challenges pending before various High Courts and the Supreme Court, particularly concerning whether extensions of limitation under Section 168A of the GST Act were validly issued.
The Delhi High Court noted that similar petitions had been heard as part of a larger batch, with a lead matter heard on 22 April 2025. There, the validity of the impugned notifications was considered, with arguments raised that Notification No. 56/2023-Central Tax did not follow the required procedure under Section 168A, particularly regarding prior recommendation of the GST Council. Various High Courts have issued differing decisions on these notifications: the Allahabad High Court upheld Notification No. 9, the Patna High Court upheld Notification No. 56, while the Guwahati High Court quashed Notification No. 56. The Telangana High Court made observations against Notification No. 56, and its judgment is now under consideration by the Supreme Court in SLP No. 4240/2025. The Supreme Court has issued notice and is examining, among other issues, whether the time limit for adjudication under Section 73 could have been extended through these notifications.
