Allahabad High Court Stays GST Order Confirming ₹13 Crore Tax Demand Against Dell India Arm

The Allahabad High Court has recently stayed the operation and effect of a GST demand order against Dell International Services India Private Limited, the Indian services arm of US technology major Dell, after recording its submission that a jurisdictional error had crept into the proceedings.

Appearing for the company, counsel submitted that besides violation of principles of natural justice, the adjudicating authority had confirmed a higher demand than what was proposed in the show cause notice.

According to the petitioner, while the show cause notice proposed demand of tax of Rs 9,49,18,645, interest of Rs 7,26,12,746 and penalty of Rs 9,49,18,645 (cumulatively Rs 17,70,23,274), the impugned order confirmed tax of Rs 13,18,30,760, interest of Rs 12,58,64,064 and penalty of Rs 1,31,83,076 (cumulatively Rs 27,08,77,899.69).

It was argued that although the proposed tax demand was approximately Rs 9 crores, tax of Rs 13 crores came to be confirmed in the final order. The petitioner contended that it was never put to notice regarding such enhanced demand and that the impugned order travelled beyond the scope of the show cause notice, rendering it unsustainable in law.

Recording the submission that “against proposed demand Rs. 9 crores the demand of tax Rs. 13 crores has been confirmed,” the bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla granted four weeks' time to the State to file a counter affidavit and two weeks thereafter for rejoinder.

The Court further directed, “Till the next date of listing, operation and effect of the impugned order dated 19.01.2026 passed by respondent no.2, shall remain stayed.”