Delhi High Court: Kemexel Ecommerce Pvt. Ltd. v. STO: Writ Petition No. 16555/2025
Background: Kemexel Ecommerce Pvt. Ltd. received a notice under Section 61 of the Delhi GST Act regarding discrepancies in its GST returns for 2019-2020. After submitting explanations and documents, the tax department accepted the petitioner’s explanation and closed the matter by order dated 26th April 2023. Despite this, a fresh demand notice under Section 73 was issued on the same grounds in May 2024, leading to the impugned order demanding Rs. 53,46,391.
Decision: The Court, held that the statutory scheme clearly bars further proceedings once the explanation for discrepancies is accepted. This principle was reinforced by precedents from the Rajasthan High Court (Goverdhandham Estate Pvt. Ltd.) and Madras High Court (Radiant Cash Management Services Ltd.) which held that once an explanation is accepted under Section 61/62, no further demand or assessment can be raised on the same grounds. The Court noted that Section 73 of the Act does not contain a non-obstante clause overriding Section 61. Therefore, any demand raised on the same grounds after acceptance of explanation under Section 61 is unsustainable.
Consequently, the Court quashed the impugned SCN and Order. The petition was disposed accordingly.
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