Dev Enterprises Vs Commissioner of DGST & Ors (Delhi High Court)
Delhi High Court recently dismissed a writ petition filed by Dev Enterprises challenging a Goods and Services Tax (GST) demand order, asserting that an incomplete response from the assessee warranted recourse to the appellate process rather than direct court intervention. The ruling underscores the importance of a comprehensive and properly supported reply during assessment proceedings and clarifies the appropriate legal avenues for challenging tax demands.
Dev Enterprises had approached the High Court under Article 226 of the Constitution of India, seeking to quash a show cause notice dated May 27, 2024, and the subsequent order dated August 28, 2024, issued by the Department of Trade and Taxes, GNCTD, pertaining to the Financial Year 2019-20. Additionally, the petition challenged the legality of several central and state GST notifications (Notification No. 9/2023-Central Tax dated March 31, 2023; Notification No. 56/2023-Central Tax dated December 28, 2023; Notification No. 9/2023-State Tax dated June 22, 2023; and Notification No. 56/2023-State Tax dated July 11, 2024).
Challenge to Notification Vires Under Supreme Court Scrutiny
The challenge to the validity of these notifications is a broader issue currently under consideration by various High Courts and, significantly, the Supreme Court of India. The Delhi High Court acknowledged that the vires of Notification Nos. 09 and 56 of 2023 (Central Tax) have seen divergent opinions from different High Courts. For instance, the Allahabad High Court has upheld Notification No. 9, and the Patna High Court has upheld Notification No. 56. Conversely, the Guwahati High Court has quashed Notification No. 56 of 2023 (Central Tax).
