Rau S IAS Study Circle Vs Goods And Service Tax GSTO 41 Delhi Department Trade Taxes Government of NCT Of Delhi & Anr. (Delhi High Court)
Delhi High Court has provided a significant reprieve to Rau S IAS Study Circle, a civil services examination coaching institute, by setting aside an ex-parte order and a show cause notice (SCN) issued by the Goods and Service Tax (GST) authorities. The court’s decision, delivered through a hybrid hearing, allows the petitioner a fresh opportunity to present its case, while explicitly deferring the broader legal challenge to the validity of certain GST notifications to the Supreme Court.
The petition filed by Rau S IAS Study Circle specifically challenged an SCN dated May 21, 2024, and a subsequent order dated August 22, 2024. Crucially, the institute also contested the validity of several notifications: Notification No. 56/2023-Central Tax dated December 28, 2023, Notification No. 09/2023-Central Tax dated March 31, 2023, Notification No. 09/2023-State Tax dated June 22, 2023, and Notification No. 56/2023-State Tax dated July 11, 2024. These notifications collectively pertain to extensions of various deadlines under the GST regime.
The challenge to these notifications is not isolated to this case. The Delhi High Court noted that the validity of these very notifications was under consideration in a batch of petitions, with the lead case being DJST Traders Pvt. Ltd. vs. Union of India and Ors. (W.P.(C) 16499/2023). The broad contention against these notifications centers on the alleged failure to follow proper procedure, particularly concerning Section 168A of the Central Goods and Services Tax Act, 2017. This section mandates a prior recommendation from the GST Council for extending deadlines.
