Allahabad HC Stays ₹13 Cr GST Demand Against Dell India After Plea of Jurisdictional Error Raised [Read Order]

The Allahabad High Court recently stayed the operation and effect of a Goods and Services Tax (GST) demand order confirming a tax of approximately ₹13 crore against Dell International Services India Private Limited, the Indian services arm of the American technology giant.

The High Court stayed the operation after entertaining the company’s plea that a jurisdictional error had crept into the proceedings, significantly enhancing the tax demand raised.

Dell InternationalServices India Private Limited filed a writ petition challenging an adjudication order dated 19 January 2026 passed by the competent authority under the provisions of the GST Act.

Nishant Mishra, counsel appearing for the petitioner submitted before the High Court that the proceedings suffered from jurisdictional error and violation of the principles of natural justice.

It was submitted that the show cause notice initially only proposed a tax demand of approximately ₹9 crore, but the impugned order ultimately confirmed a highertax demand of about ₹13 crore, inflating the actual demand figure by approximately ₹4 crore.

It is trite law that tax demand raised cannot be enhanced beyond the scope of the demand in the show cause notice preceding the order passed after adjudication.

The Division Bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla also heard submissions from Arvind Kumar Mishra, the Standing Counsel appearing for the State-respondents.

Considering the situation, the Allahabad High Court granted four weeks’ time to the State to file a counter affidavit in the matter. The petitioner was also granted time of two weeks thereafter to file a rejoinder affidavit.

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