Walsons Services Pvt. Ltd Vs Sales Tax Officer (Delhi High Court)
The petition challenges the tax demand order dated 2 August 2024 and the show cause notice issued for the 2019–2020 tax period, along with multiple Central and State notifications extending limitation periods. Similar challenges are pending across various High Courts, with differing views on the validity of Notification No. 56/2023, leading to the issue being placed before the Supreme Court in SLP No. 4240/2025. Several High Courts, including the Punjab and Haryana High Court, have disposed of connected matters by directing that outcomes will depend on the Supreme Court’s final ruling.
In the present case, the petitioner failed to file replies or attend hearings due to oversight and lack of access to the GST portal. The impugned order was passed without a hearing. Relying on an earlier judgment in a similar situation, the Delhi High Court held that the petitioner had not been afforded proper opportunity. Accordingly, the Court set aside the order, imposed costs of ₹10,000 payable to the Sales Tax Bar Association, and remanded the matter to the adjudicating authority. The petitioner was granted time until 15 December 2025 to file a reply, and the authority must then provide a personal hearing and pass a fresh reasoned order. Validity of the notifications remains open, subject to the Supreme Court’s final decision.
