Delhi High Court - Orders
Vinod J Sharma vs Union Of India & Ors on 16 February, 2026
$~72
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 2129/2026 & CM APPL. 10354/2026
VINOD J SHARMA .....Petitioner
Through: Mr. Bharat Bhushan, Ms. Nidhi
Gupta and Mr. Anunay Mishra,
Advocates.
versus
UNION OF INDIA & ORS. .....Respondents
Through: Mr. Anurag Ojha, SSC with Mr.
Dipak Raj, Advocates
CORAM:
HON'BLE MR. JUSTICE NITIN WASUDEO SAMBRE
HON'BLE MR. JUSTICE AJAY DIGPAUL
ORDER
% 16.02.2026 CM APPL. 10355/2026 (Exemption)
1. Exemption allowed, subject to all just exceptions.
2. The application stands disposed of.
W.P.(C) 2129/2026 & CM APPL. 10354/2026
3. The prayer in the petition reads thus:-
"a. Issue a writ of certiorari or any other appropriate/ order / direction to declare The Health Security Se National Security Cess Act 2025 (Act No. 35 of 2025 as unsustainable being passed beyond the legislative competence of Parliament as well as being violative of Article 14 and 19(1)(g) of the Constitution.
b. Issue an appropriate writ / order / direction to declare that the Petitioner is not required to get itself registered 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 17/02/2026 at 20:35:45 and pay Cess levied under the Health Security Se National Security Cess Act 2025 (Act No. 35 of 2025 and the rules made thereunder;
c. Issue an appropriate writ / order / direction to the respondents restraining from taking coercive action against the petitioner for not getting itself registered and not paying the cess as levied under the Health Security Se National Security Cess Act 2025 (Act No. 35 of 2025) and the rules made thereunder;
d. To Grant ad-interim relief with respect to prayer under Para (a), (b), and (c) above.
e. To issue order(s), direction(s), writ(s) or any other relief(s) as this Hon'ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;
f. To issue Rule Nisi in terms of prayers (a) to (c) above; To award Costs of and incidental to this application be paid by the Respondents;"
4. The validity of the Statute is questioned on the ground of legislative competence, so also the Schedule, particularly Schedule II, framed under Sections 2(o), 4(1), 5 and 6 of the Health Security Se National Security cess Act 2025, to be arbitrary.
5. According to learned counsel for the petitioner, the case of legislative incompetence qua the aforesaid Statute can be inferred from a plain reading of Article 270, which forms in Chapter I, Part XII of the Constitution of India, which deals with finance. According to him, Article 270 which provides for taxes levied and distributed between the Union and the States, does not in itself provide for the power to levy the Cess, as has been done under the Statute under challenge.
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 17/02/2026 at 20:35:45
6. Learned counsel for the petitioner has read Sub-Article (1) of Article 270 to substantiate his contentions. Article 270 of the Constitution of India reads thus:-
"[270. Taxes levied and distributed between the Union and the States.--(1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles [268, 269 and 269A], respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2).
[(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2). (1B) The tax levied and collected by the Union under clause (2) of article 246A and article 269A, which has been used for payment of the tax levied by the Union under clause (1) of article 246A, and the amount apportioned to the Union under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).] (2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3).
(3) In this article, "prescribed" means,--
(i) until a Finance Commission has been constituted, prescribed by the President by order, and
(ii) after a Finance Commission has been constituted, 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 17/02/2026 at 20:35:45 prescribed by the President by order after considering the recommendations of the Finance Commission.]"
7. He would further claim that the said provision if considered in light of the provisions of Chapter XI which deals with relation between the Union and the States, Chapter 1 thereunder speaks of legislative relationship. He would further claim that by virtue of 101st Constitutional Amendment, Article 246A was introduced, wherein a special provision with respect to Goods & Services Tax is made. According to him, the said provision fell for interpretation before the Apex Court in the matter of Union of India Vs. Mohit Mineral Pvt. Ltd [2018 (17) G.S.T.L. 561 (S.C)]. He would, as such, claim that the provisions of Part XII Chapter 1 cannot be read to the extent of inferring that there vests power in the Parliament to frame the Statute in relation to levy of Cess for the subject of Pan Masala, for which already the provision is made under the law viz. under Article 246A.
8. In addition, his contentions are the issue is further canvassed before the Apex Court in the matter of State of Telangana Vs. Tirumala Constructions, reported in 2023 11 Centex 259 (S.C). Since the power cannot be drawn from Article 270(1) as the same falls in Part XII and not in Part XI, wherein the power to levy is provided under Article 246A, there is a lack of legislative competence.
9. In addition to above, his contentions are the Cess is identified under the Mohit Minerals case (referred supra) to be a tax. In case of levy of tax, as in interpreted in Mohit Minerals case (referred supra), there is no corresponding obligation on the States or Union of India to provide the services as against the Cess which is levied in the form of 'Fee'. The moment Cess takes colour of 'Fee', there is a corresponding obligation of 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 17/02/2026 at 20:35:45 providing service or facility to such institution or person to whom such Cess is levied. In these background, the contentions are that the Statute framed lacks legislative competence.
10. The further contention of learned counsel for the petitioner are that the Schedule is arbitrary for the reason the Cess levy is made based on the weight of the pouch. According to him, the approach of the respondent pursuant to the levy as provided in Schedule II of the Act is arbitrary in nature for the reason that the duty is varied from less than 1% to more than 40% at places, depending on the price of the pouch. As such, he would claim that there has to be uniformity in the matter of levy of Cess and that being so, the very Schedule framed by the Parliament in the matter of levy of Cess is completely arbitrary as there is no intelligible differentia qua the rate at which the Cess is levied.
11. At this stage, learned counsel for the petitioner seeks time to place on record the written submissions.
12. Let the same be placed on record within a period of one week from today.
13. List on 26th February, 2026.
NITIN WASUDEO SAMBRE, J AJAY DIGPAUL, J FEBRUARY 16, 2026/ay/ok 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 17/02/2026 at 20:35:45