The Delhi High Court has dismissed a writ petition filed by Tata Play Ltd challenging a Goods and Services Tax (GST) demand of over Rs. 10.4 crore for the financial year 2020–21, directing the company to pursue the statutory appellate remedy.
The Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta upheld the validity of the Show Cause Notice (SCN) dated November 30, 2024, and the consequent demand order dated February 28, 2025. The order had sought ₹5.63 crore as tax, Rs. 4.22 crore as interest, and ₹56 lakh as penalty, citing wrongful availment of Input Tax Credit (ITC).
Tata Play argued that the SCN was issued beyond the limitation period prescribed under Section 73 of the CGST Act, 2017, and that the company was denied adequate opportunity of a personal hearing. However, the court rejected both contentions.
On the limitation issue, the Bench held that the SCN was issued within the mandated “three months” prior to the expiry of the three-year outer limit for passing orders. The court relied on the Supreme Court’s interpretation in Himachal Techno Engineers to clarify that “three months” means three calendar months and not 90 days. “Viewed in either way, the impugned SCN would not be barred by limitation,” the court ruled.
As for the alleged denial of natural justice, the court found that Tata Play was granted two opportunities for personal hearing, which it failed to avail. “Section 75(5) of the CGST Act only permits a maximum of three adjournments; it does not mandate a minimum,” the court noted.
Citing the Supreme Court’s ruling in Commercial Steel Ltd., the Bench refused to entertain the writ petition in the face of an alternative statutory remedy. It granted Tata Play time till August 31, 2025, to file an appeal under Section 107 of the CGST Act, along with the requisite pre-deposit, directing that such appeal must be adjudicated on merits and not be dismissed on limitation grounds.
The court clarified that its observations would not prejudice the company’s case in the appellate proceedings.
Case Details
Case Title: Tata Play Ltd Versus Sales Tax Officer Class II/ AVATO
Case No.: W.P.(C) 4781/2025 & CM APPL. 22012/2025
Date: 29th July, 2025
Counsel For Petitioner: Gautam Narayan, Senior Advocate
Counsel For Respondent: Vaishali Gupta, Panel Counsel (Civil) GNCTD
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