Delhi High Court - Orders
Petronas Energy India Pvt. Ltd vs Union Of India And Ors on 5 April, 2024
Author: Sanjeev Sachdeva
Bench: Sanjeev Sachdeva
$~14
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4979/2024
PETRONAS ENERGY INDIA PVT. LTD. ..... Petitioner
Through: Mr. Akhil Gupta, Advocate
versus
UNION OF INDIA AND ORS ..... Respondents
Through: Ms. Shagun Shahi Chugh, Advocate
for R-1.
Mr. Aditya Singla, SSC, CBIC with
Mr. Anand Pandey, Mr. Ritwik Saha,
Advocates for R- 2 & 4.
Mr. Harpreet Singh, SSC with Ms.
Suhani Mathur, Advocates for R-5 &
6.
CORAM:
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
HON'BLE MR. JUSTICE RAVINDER DUDEJA
ORDER
% 05.04.2024 CM APPL. 20375/2024 (for exemption) Exemption allowed, subject to all just exceptions. This application stands disposed of.
W.P.(C) 4979/2024 & CM APPL. 20374/2024 (for stay)
1. Petitioner impugns order in original dated 31.12.2023 whereby the show cause notice dated 28.09.2023 has been disposed of.
2. By the impugned order, a demand has been created against the petitioner on the ground of alleged default in tax payment for secondment of foreign employees (extracts) from its associated parent company.
W.P.(C) 4979/2024 page 1 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2024 at 23:17:14
3. Learned senior counsel for the petitioner submits that there is no secondment agreement for supply of manpower and the employees were hired on the independent employment contracts and there was no material before the Assessing Authority to show that any payment was made to the so called associated parent company as remuneration for providing manpower services through those employees.
4. Learned counsel further submits that identical issue is pending consideration before this Court in case of Metal One Corporation India Pvt Ltd vs Union of India & Ors in WP (C) 4945/2023 and Idemitsu Lube India Pvt Ltd vs Union of India & Ors in WP (C) 2039/2024 wherein this Court by interim orders has directed that no further proceedings would take place pursuant to the show cause notice. Learned counsel also submits that similar issue is pending in several other High Courts interalia the High Court of Punjab & Haryana in CWP 25351/2023 titled M/s Mitsubishi Electric India Pvt Ltd vs Union of India & Ors as also the Karnataka High Court in WP (C) 23915/2023 titled Alstom Transport India Ltd vs The State of Karnataka wherein on identical issues the show cause notice has been stayed.
5. We are informed that the three Writ Petitions pending before this Court are listed on 16.04.2024. Accordingly, issue notice.
6. Notice is accepted by learned counsel appearing for the respondents who prays for time to take instructions.
7. At request, list on 16.04.2024. In the meantime, no coercive action shall be taken against the petitioner pursuant to the impugned order dated W.P.(C) 4979/2024 page 2 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2024 at 23:17:14 31.12.2023 till the next date of hearing.
SANJEEV SACHDEVA, J
RAVINDER DUDEJA, J
APRIL 5, 2024/sk
W.P.(C) 4979/2024 page 3 of 3
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2024 at 23:17:14