Ahlcons India Private Limited Vs Principal Commissioner (Delhi High Court)
The Delhi High Court recently addressed a petition filed by Ahlcons India Private Limited, challenging a show cause notice and an order passed by the Principal Commissioner of CGST. The company, engaged in works contracts for manufacturing aluminum doors and windows, had a long-standing dispute with the tax authorities over service tax liability dating back to 2006.
The core of the issue revolved around four show cause notices issued to the company between 2010 and 2015. The matters were previously heard by the Customs Excise and Service Tax Appellate Tribunal (CESTAT), which had remanded the cases back to the adjudicating authority. The company’s primary contention was that in two earlier Orders-in-Original from 2013 and 2017, the authorities had dropped demands related to services provided by sub-contractors, totaling over ₹12 crore. The tax department did not challenge this aspect of the order. However, the company appealed the confirmed demands on mobilization advances and other issues, which led to the remand orders from the CESTAT.
The petitioner’s counsel argued that the latest impugned order, dated March 30, 2025, was unsustainable because it had re-confirmed the very demands that were previously dropped and not challenged by the department. They asserted that the CESTAT’s remand orders only intended for a fresh adjudication on the points appealed by the petitioner, not a reopening of the dropped demands. The counsel also pointed out the substantial delay of over six to seven years in passing the latest order after the CESTAT’s remand.
