Shivalik Housekeeping Services Vs Department of Revenue And Ors (Delhi High Court)
In a recent order, the Delhi High Court has addressed a writ petition filed by Shivalik Housekeeping Services challenging a Goods and Services Tax (GST) demand of ₹21,80,36,550. The petitioner, which supplies housekeeping services to government educational institutions, sought a waiver of the mandatory 10% pre-deposit required to file an appeal against the Order in Original dated January 20, 2025. The company contended that its services are exempt from GST under Notification No.12/2017- Central Tax (Rate) and a subsequent 2018 notification, arguing that the services rendered to government educational bodies fall under the ‘pure services’ category. It was submitted to the court that based on this interpretation, the company had not collected any GST from its clients. The High Court, after issuing notice to the Department of Revenue, opined that the core issue—whether the petitioner’s clients are covered by the exemption notifications—is a factual matter that requires detailed examination of each client’s status. The court deemed the Appellate Authority the appropriate forum for this determination. Acknowledging the “peculiar facts” of the case, specifically that the petitioner had not collected the tax from its clients, the court permitted the company to file its appeal by July 10, 2025. In its final directive, the High Court disposed of the petition by instructing the Appellate Authority to first consider the facts and then determine the pre-deposit amount payable by Shivalik Housekeeping Services, rather than granting a direct waiver.
