D J Associates Vs Commissioner of DGST & Ors. (Delhi High Court)
Delhi High Court has stayed proceedings in the petition filed by D J Associates challenging the show cause notice and subsequent order issued by the Department of Trade and Taxes, GNCTD, pertaining to the Financial Year 2019-20. The petition also contests the legality of several notifications from 2023 and 2024 (Notification No. 9/2023-Central Tax, Notification No. 56/2023- Central Tax, Notification No. 09/2023-State Tax, and Notification No. 56/2023-State Tax), which extend Goods and Services Tax (GST) limitation periods. The court’s decision comes in light of a pending Supreme Court case that addresses similar challenges to the validity of these extensions.
The case, D J Associates Vs Commissioner of DGST & ORS., heard through hybrid mode, revolves around the petitioner’s claim that they were not afforded an opportunity to file a reply to the show cause notice (SCN) and that the impugned order was passed without a personal hearing, thereby violating principles of natural justice. The impugned order, dated August 24, 2024, by the Sales Tax Officer Class II/ AVATO, Delhi, was described as “nonspeaking, cryptic and vague in nature.”
Judicial Precedents and Conflicting High Court Views: The validity of the contested notifications, particularly Notification Nos. 09 and 56 of 2023 (Central Tax), has been a subject of contention across various High Courts. The Delhi High Court itself had been considering a batch of petitions with similar challenges, the lead case being W.P.(C) 16499/2023 titled ‘DJST Traders Pvt. Ltd. vs. Union of India and Ors.’.
