The Delhi High Court has directed that no coercive measures be taken against Shiningkart Ecommerce Private Ltd. concerning a Rs. 91.4 lakh interest demand raised through an order, noting that overlapping tax demands for the same period had already been issued by both the Delhi and Central GST departments.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that the interest demands for the period July 2017 to March 2018 were subject to three separate proceedings — two of which are already under appeal by the petitioner. After reviewing the three orders, the Court noted apparent overlap and duplication in the demands.
The bench stated, “no coercive measures shall be taken in respect of recovery under the impugned order,” providing interim protection to the petitioner while the case is under consideration.
The petitioner/assessee has challenged , three different orders were issued by Delhi GST and DGGI authorities (in 2022, 2023, and 2025), all demanding interest for late filing of GSTR-3B. While our client had already filed appeals against the 2023 and 2025 orders, they were unaware of the 2022 order, which came to their notice only while preparing the latest appeal.
Even though a reply had been filed in 2022 pointing out that DGGI was already handling the matter for 2017-18, the DGST still passed an order demanding interest under CGST and SGST heads for an IGST liability, which was fully paid using the client’s available ITC. Interestingly, in 2023, the same authority had demanded interest under IGST head, showing clear inconsistency.
As the appeal window for the 2022 order had expired, the petitioner approached the Delhi HC directly.
After hearing noting the clear errors, duplication of demand and multiplicity of proceedings, the Court issued the notice and stayed the operation of the 2022 order.
The Court issued notice to the respondents, directing them to file counter affidavits within four weeks, followed by rejoinders within two weeks. The matter will be next heard by the Joint Registrar on August 12, 2025, for completion of pleadings and is scheduled for further hearing before the Court on October 14, 2025.
The ruling provides significant interim relief to the company while also shedding light on the need for coordinated enforcement between multiple GST jurisdictions to prevent duplication and confusion in tax proceedings.
Case Details
Case Title: Shiningkart Ecommerce Private Ltd Versus UOI
Case No.: W.P.(C) 9111/2025& CM APPL. 38746/2025
Date: 07.07.2025
Counsel For Appellant: Nikhil Gupta
Counsel For Respondent: Vivek Sharma
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