Aggarwal Traders Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court considered a writ petition filed by Aggarwal Traders under Article 226 of the Constitution of India challenging an order dated 25 August 2024 passed pursuant to a show cause notice dated 28 May 2024 by the Sales Tax Officer. The impugned order raised a tax demand of ₹35,61,082 for the financial year 2019–20. Along with the order, the petitioner also challenged certain Central and State GST notifications issued in 2023 and 2024 that extended limitation periods.
The Court noted that the challenge to these notifications was part of a larger batch of petitions pending before various High Courts, with conflicting views having emerged. While some High Courts upheld the notifications, others quashed them. The issue of their validity, particularly under Section 168A of the CGST Act, 2017, was already pending consideration before the Supreme Court in SLP No. 4240/2025. In view of judicial discipline, several High Courts, including Punjab and Haryana, had refrained from adjudicating on the validity of the notifications and made their interim orders subject to the Supreme Court’s final decision.
The Delhi High Court observed that, given the pendency of the issue before the Supreme Court, the petitioner’s challenge to the impugned notifications would also be subject to the outcome of those proceedings. The Court further noted that, in many cases across the batch of petitions, adjudication orders had been passed ex parte due to non-filing of replies and non-availing of personal hearings, resulting in substantial demands and penalties.
