Authority: High Court of Delhi (Delhi High Court)

Order Date: 15 July 2026

Case Overview

  • Petitioner: Sodexo India Services Private Limited, represented by senior counsel Ms. Kavita Jha and a team of advocates.
  • Respondents: Union of India and others, represented by Mr. Arjun Malik, SSC, CBIC with counsel.
  • The petition challenged an Order‑in‑Original dated 24 March 2026 issued under Section 74 of the CGST Act, which confirmed a demand of approximately Rs 8.75 crore (including interest and penalty) on eleven issues arising from GST audit proceedings. The main contention was that the supply of catering services and sale of pre‑packaged food products constituted a composite supply liable to GST at 18%.
  • Sodexo argued that the adjudicating authority had not sufficiently considered its replies and supporting documents, thereby violating the principles of natural justice, and sought relief under Article 226 of the Constitution.
  • Respondents contended that the statutory appeal under Section 107 of the CGST Act is the appropriate and efficacious remedy, and that the petitioner was afforded ample opportunity to present its case, including detailed replies to the Audit Memo, Additional Audit Memo, and Show‑Cause Notice, as well as participation in personal hearings.

Final Outcome

  • The Court held that no exceptional circumstance (breach of fundamental rights, violation of natural justice, excess of jurisdiction, or vires challenge) exists to bypass the statutory remedy.
  • It observed that the petitioner actively participated throughout the adjudication process, furnishing detailed replies, agreements, invoices, reconciliations, and other documentary evidence, and that the adjudicating authority had noted the petitioner’s reply in the impugned order.
  • Consequently, the writ petition is dismissed, leaving the petitioner free to avail the statutory appeal under Section 107 of the CGST Act.
  • The Court clarified that the period during which the writ petition remained pending will not be counted towards the limitation period for any appeal under Section 107; the appellate authority will consider limitation and merits independently.
  • All pending applications in the matter are closed.

Topics: GST, Writ Petition, Judicial Review