Grilled Roti Vs Commissioner of Delhi Goods and Services Tax (Delhi High Court)
Delhi High Court has set aside a show cause notice and a subsequent order issued against M/s Grilled Roti for the Financial Year 2017-18. The petitioner, through its proprietor Mr. Atul Jain, had challenged both the substantive order and the vires (legal validity) of Notification No. 9/2023-Central Tax dated March 31, 2023, and Notification No. 9/2023-State Tax dated June 22, 2023.
Challenge to Notification Validity
The core legal challenge in this and numerous other petitions before the Delhi High Court revolves around the validity of notifications extending various GST deadlines. These notifications, issued under Section 168A of the Central Goods and Services Tax Act, 2017 (CGST Act), are being contested primarily on the ground that the requisite prior recommendation of the GST Council was not obtained, or that ratification occurred post-issuance. The lead case in this batch of petitions is P.(C) 16499/2023 titled DJST Traders Pvt. Ltd. vs. Union of India and Ors.
Judicial Precedents and Divergent High Court Views:
The validity of these notifications has been a point of contention across various High Courts:
- Allahabad High Courthas upheld the validity of Notification No. 9.
- Patna High Courthas upheld the validity of Notification No. 56.
- Conversely, the Guwahati High Courthas quashed Notification No. 56 of 2023 (Central Tax).
- The Telangana High Court, while not explicitly ruling on the vires, made observations suggesting the invalidity of Notification No. 56 of 2023 (Central Tax). This judgment is presently under consideration by the Supreme Court in L.P No 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.
The Supreme Court, in its order dated February 21, 2025, in the HCC-SEW-MEIL-AAG JV case, acknowledged the “cleavage of opinion” among different High Courts regarding the extension of time limits for adjudication under Section 73 of the GST Act through these notifications. The Supreme Court has issued notice on the SLP, indicating its intent to provide a definitive ruling.
