R L Enterprises Vs Commissioner of State Goods and Service Tax Delhi & Ors. (Delhi High Court)
The Delhi High Court considered a petition filed by R.L. Enterprises under Articles 226 and 227 of the Constitution of India challenging the Show Cause Notice dated 2 December 2023, the adjudication order dated 30 April 2024, and Notification No. 56/2023-Central Tax dated 28 December 2023. At the outset, the Petitioner stated that it did not wish to press prayers challenging Section 16(2)(c) of the CGST Act, 2017/DGST Act, 2017 and certain orders issued by the Department of Trade and Taxes, Government of NCT of Delhi. The Court noted that the validity of Notification No. 56/2023-Central Tax was already under consideration in a batch of matters led by DJST Traders Pvt. Ltd. vs. Union of India and Ors., W.P.(C) 16499/2023.
The Court referred to the pending litigation concerning Notification No. 56/2023-Central Tax and noted that different High Courts had taken different views. The Allahabad High Court had upheld Notification No. 9, the Patna High Court had upheld Notification No. 56, while the Guwahati High Court had quashed Notification No. 56 of 2023 (Central Tax). The Court also referred to proceedings before the Supreme Court in S.L.P No 4240/2025, M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors., concerning whether the time limit for adjudication of show cause notices and passing orders under Section 73 of the GST Act and the Telangana GST Act for financial year 2019-2020 could be extended through notifications issued under Section 168-A of the CGST Act. The Punjab and Haryana High Court had disposed of connected matters subject to the Supreme Court’s decision.
