Fresh Feel Apparels Vs Union of India (Delhi High Court)
The Delhi High Court has directed Fresh Feel Apparels to pursue its challenge against a tax demand order before the appellate authority, rather than directly intervening in the ongoing writ petition. The company had approached the High Court seeking to quash a show cause notice (SCN) and a subsequent order from the Department of Trade and Taxes, GNCTD, pertaining to the Financial Year 2019-20. The petition also challenged the legality of Notification No. 9/2023-Central Tax, dated March 31, 2023.
Background of the Dispute
Fresh Feel Apparels received a show cause notice on May 28, 2024, followed by an order dated August 28, 2024, from the Sales Tax Officer. The company contended that this order, which raised a demand of Rs. 4,12,90,488, was issued primarily due to the retrospective cancellation of registration of its supplying dealers. The apparel firm claimed that its detailed reply, submitted on June 27, 2024, along with supporting documents, was not adequately considered by the tax authorities.
Challenge to Notification’s Validity
A significant aspect of the petition was the challenge to the vires (legal authority) of Notification No. 9/2023-Central Tax. This notification, and others like it, have been subject to widespread legal scrutiny across various High Courts in India. These notifications extend deadlines for adjudication of show cause notices and passing orders under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017.
