Tirupati Cement Products Vs Joint Director Directorate General of GST Intelligence Delhi Zonal Unit & Anr. (Delhi High Court)
The Delhi High Court considered writ petitions challenging a show cause notice dated 19 September 2025 issued to contractors engaged by the Delhi Jal Board, seeking differential GST at 6% on works contracts. The core issue was whether such contracts attract GST at 12% or 18%, which depends on whether the Delhi Jal Board qualifies as a “local authority” under Section 2(69) of the CGST Act.
The petitioners contended that the Delhi Jal Board is a local authority, relying on a policy decision dated 16 November 2020, and submitted that they had already discharged GST at 12%. It was also argued that the issue affects multiple contractors facing similar notices. The Delhi Jal Board supported this position, asserting that it is a local authority.
The GST Department, however, opposed the claim, arguing that the Delhi Jal Board does not qualify as a local authority, and therefore the concessional rate would not apply.
The Court observed that the issue is a legal question requiring determination to avoid prolonged litigation. It held that the matter is fit for adjudication in writ jurisdiction and directed filing of affidavits by the respondents. Pending further consideration, the Court granted interim relief by staying proceedings pursuant to the impugned show cause notice.
