Saraswati Printers Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court disposed of W.P.(C) 10640/2025 and W.P.(C) 10724/2025, which challenged Notification No. 40/2021-Central Tax dated 29.12.2021 and Notification No. 40/2021-State Tax (Delhi) dated 09.06.2022, as well as consequential Show Cause Notices and Demand Orders under Section 73 for Financial Year 2020-21. During the proceedings, the Petitioners did not press the challenge to the Notifications and sought disposal in terms of the Punjab and Haryana High Court’s decision in Luxmi Traders v. Union Territory of Chandigarh and Others, CWP-27139-2025 (O&M), decided on 21.07.2026. The Delhi High Court noted that the factual position concerning the SCNs differed between the two petitions. In W.P.(C) 10640/2025, Saraswati Printers v. Sales Tax Officer Class-II/AVATO & Others, the Petitioner had filed a reply to the SCN dated 27.11.2024 and thereby acknowledged and participated in the proceedings. Consequently, the proceedings could not be restored to the SCN stage. However, as the Demand Order dated 27.02.2025 had been served only by uploading it on the Common Portal, the Petitioner was permitted to file a statutory appeal within four weeks, which, subject to other statutory requirements, was to be entertained without objection on limitation and decided on merits. In W.P.(C) 10724/2025, Fabgar Overseas Private Limited v. Sales Tax Officer Class-II/AVATO & Others, the SCN dated 20.11.2024 was served only by portal upload, no reply was filed and the Demand Order dated 21.02.2025 was passed ex parte. The Court therefore set aside the Demand Order and restored the proceedings to the stage of issuance of the SCN, directing the Petitioner to reply within four weeks and requiring the Adjudicating Authority to provide a personal hearing and pass a fresh reasoned order. The Court dismissed the challenge to the Notifications as not pressed and expressly left their validity undecided, while stating that it had not expressed any opinion on the merits of the tax demands.
