The Delhi High Court has disposed of a writ petition challenging a GST demand of ₹4.12 crore, arising from discrepancies between GSTR-1 and GSTR-3B filings, and directed the taxpayer to pursue the appellate remedy instead of seeking relief under writ jurisdiction.
The Bench of Justice Prathiba M. Singh and Justice Shail Jain noted that the question of which GST return figures are correct requires a factual analysis not suitable for writ jurisdiction. The taxpayer should instead pursue an appeal, which if filed by October 15, 2025, along with the requisite pre-deposit, shall be entertained on merits without being dismissed for limitation. The appellate decision will remain subject to the outcome of the Supreme Court case and connected proceedings before the Delhi High Court. Although the deadline for rectifying GST returns has expired, the taxpayer may still explore remedies available in law.
The petition assailed both the show cause notice dated December 8, 2023 and the assessment order dated April 22, 2024, alleging that the adjudicating authority ignored the reply and documents furnished during the proceedings.
The case also raised a challenge to Notification No. 9/2023 and Notification No. 56/2023 under the Delhi GST Act, which extended the limitation period for adjudication. These notifications have faced scrutiny across multiple High Courts, resulting in conflicting judgments. The matter is currently before the Supreme Court in SLP No. 4240/2025, where the final verdict is expected to provide nationwide clarity.
At the heart of the dispute lies a mismatch in GST returns. In GSTR-1, the taxable value under B2C supplies was erroneously reported as ₹18.74 crore, while GSTR-3B reflected the correct figure of ₹1.06 crore. The tax department relied on the inflated figure to issue the show cause notice and raise a substantial demand.
Despite the taxpayer’s reply filed on March 9, 2024, and attendance at the personal hearing, the assessment order was passed without considering the explanation.
The case reflects the uncertainty caused by extension notifications under GST and highlights the ongoing judicial divide. Businesses across India are closely watching the Supreme Court’s verdict, which will determine the validity of such notifications and their impact on thousands of pending cases.
The Delhi High Court, while refraining from ruling on the validity of GST notifications, ensured that the taxpayer retains the right to contest the massive demand through the appellate process.
Case Details
Case Title: M/S K.K. Construction Co. Versus Commissioner Of Sgst, Delhi & Anr
Case No.: W.P.(C) 12943/2025
Date: 26/08/2025
Counsel For Petitioner: Shailender Verma
Counsel For Respondent: Sumit K. Batra
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