Case Law Details
Tata Projects Limited Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court considered two writ petitions raising a jurisdictional issue concerning show cause notices issued under GST. The petitioners contended that the impugned show cause notices were issued by an Assistant Commissioner/GST Officer, whereas Circular No. 31/05/2018 dated 09.02.2018 issued by the Central Board of Indirect Taxes and Customs mandates that where the demand exceeds ₹2 crore, the notice must be issued only by an Additional Commissioner or Joint Commissioner.
During the hearing, counsel for the CBIC produced a letter dated 04.12.2025 indicating that clarification had been sought from the GST Policy Wing on this issue. The Court noted the significance of the matter, particularly since it was submitted that, at least in Delhi, no Additional Commissioner is available for issuing such notices. The Court directed that the clarification be placed on record on the next date of hearing. Meanwhile, proceedings pursuant to the impugned show cause notices may continue, but any final order passed shall not be given effect to without the Court’s permission. The matters were listed for further hearing on 02.02.2026.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
2. On the previous date of hearing in W. P.(C) 16888/2025 vide order dated 14th November, 2025 the following issue was raised in these two petitions:
“3. The short issue that has been raised is that, the impugned SCN has been issued by the Assistant Commissioner /GSTO, Ward 109, (Special Zone),Zone 12, Delhi. However, in terms of Circular No. 31/05/2018 dated 09th February, 2018, issued by the Central Board of Indirect Taxes and Customs, when the demand is above Rs. 2,00,00,000/-, the same ought to be issued only by the Additional Commissioner or the Joint Commissioner, and not by any officer below this rank.”
3. Today, Mr. R. Ramchandran, ld. SSC for Central Board of Indirect Taxes and Customs (hereinafter, ‘CBIC’) has handed over a letter dated 4th December, 2025, wherein, a clarification has been sought from the GST Policy Wing.
4. The issue involved in these petitions is important, in as much as, in demands exceeding Rs. 2 crores, at least in Delhi, the submission on behalf of ld. Counsels for the CBIC and Delhi GST Department is that there is no Additional Commissioner at all.
5. Let the clarification given by the GST Policy wing be placed before the Court on the next date of hearing.
6. The proceedings in the Show Cause Notice dated 30th September, 2025 in W.P.(C) 16888/2025 and Show Cause Notice dated 23rd September, 2025 in W.P.(C) 17856/2025 shall continue and if the final order is passed, the same shall not be given effect to, without the permission of this Court.
7. List on 2nd February, 2026.
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