Bhutani Automobiles LLP Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition filed under Article 226 of the Constitution challenging an order dated 28 December 2023 passed by the Sales Tax Officer for the financial year 2017–18, which raised tax demand against the petitioner pursuant to a show cause notice dated 25 September 2023. The petition also challenged Central and State GST notifications issued in 2023 that extended limitation periods for adjudication. The challenge to these notifications was identical to issues raised in a batch of petitions previously heard by the Court, where the validity of such notifications was questioned on the ground that statutory procedure under Section 168A of the CGST Act had not been followed.
The Court noted that different High Courts had taken divergent views on the validity of these notifications and that the issue was pending consideration before the Supreme Court in a special leave petition. In light of this, the Delhi High Court reiterated that challenges to the notifications would be subject to the final outcome of the Supreme Court proceedings.
On facts, the Court observed that the petitioner had received the show cause notice, filed a reply on 24 October 2023, and was later issued a reminder for personal hearing on 4 December 2023, following which the impugned order was passed. While the respondent contended that the petitioner had waived personal hearing, the Court noted that replies relying on invoices and confirmation letters had already been submitted. The Court further recorded that the petitioner’s GST registration was cancelled on 19 March 2024 and that conversion from a private limited company to an LLP occurred on 24 April 2024.
