M/s Kalyr Retail Pvt. Ltd., successor in interest of M/s Freeway Clothing Company v. Commissioner of GST, Delhi and Others

Case snapshot

Sections / provisions: GST statutory provision - Section 73; GST statutory provision - Section 168; GST statutory provision - Section 168A

Questions before the Court / Tribunal

• Issue and context: The Petitioner- M/s. Kalyr Retail Pvt. Ltd. is a proprietorship firm and has filed the present petitions under Article 226 and 227 of the Constitution of India, inter alia , challenging the impugned Show Cause Notices dated 31st May, 2024 and 26 th September, 2023 (hereinafter, ‘impugned SCNs’) and the consequent orders dated 01st August, 2024 and 20th December, 2023 passed by the Sales Tax Officer Class II/AVATO, Delhi. Operative disposition: The petition is disposed of in these terms. All pending applications, if any, are also disposed of. PRATHIBA M. SINGH JUDGE SHAIL JAIN JUDGE OCTOBER 31,
• Which factual, statutory and procedural conditions controlled the requested relief?
• How did the forum apply the governing provisions to the evidence and procedural history recorded in this case?

Material facts and procedural background

5. Additionally, the present petitions also challenges the following Notifications:  Notification No. 56/2023- Central Tax dated 28th December, 2023;  Notification No. 56/2023- State Tax dated 11th July, 2024;  Notification No. 9/2023- Central Tax dated 31st March, 2023, and  Notification No. 09/2023-State Tax dated 22 nd June, 2023 (hereinafter, ‘the impugned notifications’). 6. The challenge in the present petition is similar to a batch of petitions wherein inter alia, the impugned notifications were challenged. W.P.(C) No. 16499/2023 titled DJST Traders Private Limited v. Union of India &Ors.was the lead matter in the said batch of petitions. On 22 nd April, 2025, the parties were heard at length qua the validity of the impugned notifications and accordingly, the following order was passed: “4. Submissions have been heard in part. The broad challenge to both sets of Notifications is on the ground

Insofar as the Notification No. 56 of 2023 (State Tax) is concerned, the challenge is to the effect that the same was issued on 11th July, 2024 after the expiry of the limitation in terms of the Notification No.13 of 2022 (State Tax). 5. In fact, Notification Nos. 09 and 56 of 2023 (Central Tax) were challenged before various other High Courts. The Allahabad Court has upheld the validity of Notification no.9. The Patna High Court has upheld the validity of Notification no.56. Whereas, the Guwahati High Court has quashed Notification No. 56 of 2023 (Central Tax). 6. The Telangana High Court while not delving into the vires of the assailed notifications, made certain observations in respect of invalidity of Notification No.

W.P.(C) 15918/2025& connected matters Page 5 of 11 2. However, in the present petition, we are concerned with Notification Nos.9 & 56/2023 dated 31-3-2023 respectively. 3. These Notifications have been issued in the purported exercise of power under Section 168 (A) of the Central Goods and Services Tax Act. 2017 (for short, the "GST Act"). 4. We have heard Dr. S. Muralidhar, the learned Senior counsel appearing for the petitioner. 5. The issue that falls for the consideration of this Court is whether the time limit for adjudication of show cause notice and passing order under Section 73 of the GST Act and SGST Act (Telangana GST Act) for financial year 2019-2020 could have been extended by issuing the Notifications in question under Section 168-A of the GST Act.

6. There are many other issues also arising for consideration in this matter. 7. Dr. Muralidhar pointed out that there is a cleavage of opinion amongst different High Courts of the country. 8. Issue notice on the SLP as also on the prayer for interim relief, returnable on 7-32025.” 7. In the meantime, the challenges were also pending before the Bombay High Court and the Punjab and Haryana High Court. In the Punjab and Haryana High Court vide order dated 12th March, 2025, all the writ petitions have been disposed of in terms of the interim orders passed therein. The operative portion of the said order reads as under: “65.

W.P.(C) 15918/2025& connected matters Page 7 of 11 some cases, proceedings including appellate remedies may be permitted to be pursued by the Petitioners, without delving into the question of the validity of the said notifications at this stage. 11. The said categories and proposed reliefs have been broadly put to the parties today. They may seek instructions and revert by tomorrow i.e., 23rd April, 2025.” 7. The abovementioned writ petition and various other writ petitions have been disposed of by this Court on subsequent dates, either remanding the matters or relegating the parties to avail of their appellate remedies, depending upon the factual situation. All such orders are subject to further orders of the Supreme Court.

Appellant / petitioner / assessee submissions

The judgment does not separately label this side’s submissions in an independently extractable passage. No contention is inferred; read the full record.

Revenue / respondent submissions

The judgment does not separately label the respondent’s submissions in an independently extractable passage. No contention is inferred; read the full record.

Court / Tribunal analysis and reasoning

The Court has heard ld. Counsels for the parties for a substantial period today. A perusal of the above would show that various High Courts have taken a view and the matter is squarely now pending before the Supreme Court. 9. Apart from the challenge to the notifications itself, various counsels submit that even if the same are upheld, they would still pray for relief for the parties as the Petitioners have been unable to file replies due to several reasons and were unable to avail of personal hearings in most cases. In effect therefore in most cases the adjudication orders are passed ex-parte. Huge demands have been raised and even penalties have been imposed.

13. Thereafter, SCN was issued on 31 st May, 2024. The further submission of ld. Counsel for the Petitioner is that the SCN dated 31st May, 2024 did not come to the notice of the Petitioner and, therefore, no reply was filed by the Petitioner. 14. Ld. Counsel for the Petitioner has sought to explain the conduct of the Petitioner by stating that since the earlier entity had been fully taken over, the GST portal of the said entity was not been accessed regularly, and in fact, the impugned SCNs and the impugned orders came to the knowledge of the Petitioner only in July of 2025. 15. The Court has heard the parties.

W.P.(C) 15918/2025& connected matters Page 9 of 11 Petitioner was not afforded with an opportunity to file a reply to the SCN dated 23rd May, 2024 and the impugned order was passed without affording the Petitioner with an opportunity to be heard. Hence, the impugned order is a non-speaking order and is liable to be set aside on the said ground. 7. Heard. The Court has considered the submissions made. The Court has perused the records. In this petition, as mentioned above, no reply to the SCN has been filed by the Petitioner. Relevant portion of the impugned order reads as under: And whereas, the taxpayer had neither deposited the proposed demand nor filed their objections/ reply in DRC-06 within the stipulated period of time, therefore, following the Principle of Natural Justice, the taxpayer was granted opportunities of personal hearing for submission of their reply/objections against the proposed demand before passing any adverse order.

And whereas, neither the taxpayer filed objections/reply in DRC 06 nor appeared for personal hearing despite giving sufficient opportunities, therefore, the undersigned is left with no other option but to upheld the demand raised in SCN/DRC 01. DRC 07 is issued accordingly. 8. This Court is of the opinion that since the Petitioner has not been afforded an opportunity to be heard and the said SCN and the consequent impugned order have been passed without hearing the Petitioner, an opportunity ought to be afforded to the Petitioner to contest the matter on merits. 9. Accordingly, the impugned order is set aside. The Petitioner is granted 30 days’ time to file the

Operative decision and relief

In fact, this Court in Sugandha Enterprises through its Proprietor Devender Kumar Singh (Supra) , under similar circumstances where no reply was filed to the SCN had remanded the matter in the following terms: “6. On facts, however, the submission of the Petitioner in the present petition is that the

W.P.(C) 15918/2025& connected matters Page 10 of 11 reply to SCN. Upon filing of the reply, the Adjudicating Authority shall issue to the Petitioner, a notice for personal hearing. The personal hearing notice shall be communicated to the Petitioner on the following mobile no. and e-mail address:....” 16. Under such circumstances, considering the fact that the Petitioner did not get a proper opportunity to be heard and no reply to the impugned SCNs has been filed by the Petitioner, the matter deserves to be remanded back to the concerned Adjudicating Authority. 17. Accordingly, the impugned orders are set aside. The Petitioner is granted time till 30 th November, 2025, to file the reply to impugned SCNs.

W.P.(C) 15918/2025& connected matters Page 11 of 11 W.P.(C) 9214/2024 titled Engineers India Limited v. Union of India &Ors. 20. The above is subject to the cost of Rs.25,000/- in the W.P.(C) 15918/2025 and Rs.10,000/- in the W.P.(C) 16530/2025, which shall be paid to the GST Department within two weeks from this order. 21. The petition is disposed of in these terms. All pending applications, if any, are also disposed of. PRATHIBA M. SINGH JUDGE SHAIL JAIN JUDGE OCTOBER 31, 2025/pd/sm

Ratio and legal principle

The narrow proposition associated with M/s Kalyr Retail Pvt. Ltd., successor in interest of M/s Freeway Clothing Company v. Commissioner of GST, Delhi and Others concerns issue and context: the petitioner- m/s. kalyr retail pvt. ltd. is a proprietorship firm and has filed the present petitions under article 226 and 227 of the constitution of india, inter alia , challenging the impugned show cause notices dated 31st may, 2024 and 26 th september, 2023 (hereinafter, ‘impugned scns’) and the consequent orders dated 01st august, 2024 and 20th december, 2023 passed by the sales tax officer class ii/avato, delhi. operative disposition: the petition is disposed of in these terms. all pending applications, if any, are also disposed of. prathiba m. singh judge shail jain judge october 31, The proposition cannot be separated from the judgment’s facts, the governing statutory version, the forum’s jurisdiction, and the exact relief recorded in W.P.(C) 15918/2025.

For working-paper purposes, the decision should be cited only after matching the material facts and reading the passages under the judgment-grounded record above. The editorial outcome label “Allowed / set aside” is a navigation aid; it does not replace the operative order or explain every issue in a multi-issue case.

Why this judgment matters

This decision is relevant when a file raises the same central question identified in the source headnote: Issue and context: The Petitioner- M/s. Kalyr Retail Pvt. Ltd. is a proprietorship firm and has filed the present petitions under Article 226 and 227 of the Constitution of India, inter alia , challenging the impugned Show Cause Notices dated 31st May, 2024 and 26 th September, 2023 (hereinafter, ‘impugned SCNs’) and the consequent orders dated 01st August, 2024 and 20th December, 2023 passed by the Sales Tax Officer Class II/AVATO, Delhi. Operative disposition: The petition is disposed of in these terms. All pending applications, if any, are also disposed of. PRATHIBA M. SINGH JUDGE SHAIL JAIN JUDGE OCTOBER 31, Its practical value lies in the way the Delhi High Court connected the governing provisions—GST statutory provision - Section 73; GST statutory provision - Section 168; GST statutory provision - Section 168A—to the procedural posture and evidence before it.

The authority level is High Court. That affects persuasive or binding weight, but authority level alone is never enough. Territorial jurisdiction, statutory period, the identity of the challenged order, and later appellate treatment must all be checked before the case is used in advice, a submission, or litigation strategy.

Practitioner action points

• Begin with the complete judgment and mark the paragraphs supporting the exact proposition relied upon.
• Match the statutory version of GST statutory provision - Section 73; GST statutory provision - Section 168; GST statutory provision - Section 168A and the decision date 2025-10-31; do not assume the current text is identical.
• Compare the notice, assessment, appeal or other procedural sequence with the chronology recorded in this case.
• Verify the stated later-history status and any review, appeal, SLP, curative or rectification proceedings before citation.
• Record why the client’s evidence is materially similar, and also record any fact capable of distinguishing the result.

Does this case match your facts?

Detailed reliance and distinction analysis

Identity check. Confirm that the cited cause title is M/s Kalyr Retail Pvt. Ltd., successor in interest of M/s Freeway Clothing Company v. Commissioner of GST, Delhi and Others, the proceeding is W.P.(C) 15918/2025, and the decision is dated 2025-10-31. These fields are taken from the judgment record and should appear exactly in the citation note.

Bench check. The judgment identifies the coram as JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN. A later order by another bench, a larger bench, or a higher forum may alter the weight or interpretation of the proposition.

Provision check. The source associates the dispute with GST statutory provision - Section 73; GST statutory provision - Section 168; GST statutory provision - Section 168A. The practitioner should place the historical statutory text next to the current text and identify every amendment, proviso, explanation, rule or notification that could change the analysis.

Fact check. The source issue is not a free-standing abstract rule. It arises from the concrete record summarized above. A reliable application note should list the common facts, the different facts, and whether each difference affects jurisdiction, admissibility, limitation, burden, computation or relief.

Remedy check. The recorded result is Allowed / set aside. Where a matter is remanded, set aside, partly allowed, or disposed with directions, the exact operative language is more important than a binary winner/loser label.

History check. The current closure state is KNOWN_LATER_HISTORY_SUPREME_COURT_SLP_4240_2025_PENDING. If that state is pending, the page does not assert that no later case exists. It means the check remains open and must be completed at the point of professional reliance.

Section / provision impact

• GST statutory provision - Section 73 — apply the exact version considered in the judgment.
• GST statutory provision - Section 168 — apply the exact version considered in the judgment.
• GST statutory provision - Section 168A — apply the exact version considered in the judgment.

Case network

• Sun International Limited v. Commissioner of Delhi Goods and Services Tax and Another — Delhi High Court · Allowed / set aside
• Globe Overseas Pvt. Ltd. through Director Vipin Mittal v. Commissioner of DGST and Others — Delhi High Court · Allowed / set aside
• M/s Padam Kishore and Company through Proprietor Naveen Sachdeva v. Union of India and Others — Delhi High Court · Allowed / set aside
• T V Sundram Iyengar and Sons Private Limited v. Commissioner of GST (State) and Others — Delhi High Court · Allowed / set aside

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