Engineers India Limited Vs Union of India & Ors. (Delhi High Court)
Delhi High Court has decided to defer its judgment on a petition filed by Engineers India Limited challenging an adjudication order and specific Goods and Services Tax (GST) notifications that extended tax-related deadlines. The Court’s decision is contingent upon a forthcoming ruling by the Supreme Court of India, which is currently examining the validity of similar notifications due to a divergence of opinions among various High Courts across the country.
The Core Dispute: Extended Deadlines and Procedural Compliance
Engineers India Limited’s petition specifically contests an adjudication order dated April 30, 2024, issued by the Goods And Services Tax Officer under Section 73 of the Delhi/Central Goods and Services Tax Act, 2017 (DGST/CGST Act, 2017). Additionally, the petition challenges Notification No. 09/2023-State Tax, issued by the Government of NCT, Delhi, on June 22, 2023. This petition is part of a larger cohort of similar cases lodged before the Delhi High Court, all broadly challenging the legality of notifications that extended deadlines under Section 168A of the GST Act.
The central point of contention revolves around the procedural requirement for issuing such extensions. Section 168A of the GST Act mandates a prior recommendation from the GST Council before any deadlines can be extended. Petitioners argue that while some notifications might have adhered to this, others, particularly Notification No. 56/2023 (Central Tax), were issued purportedly without prior recommendation and later received only ratification, or were issued after the expiry of the original limitation period. This forms the basis of the challenge to their validity.
