The Allahabad High Court stayed the operation and effect of a Goods and Services Tax (GST) demand order, affirming a tax of nearly Rs 13 crore against Dell International Services India Private Limited, the Indian services arm of the American technology giant.
The High Court stayed the operation post observing the appeal of the company that a jurisdictional error had crept into the proceedings, enhancing the raised tax demand.
A writ petition has been submitted via Dell International Services India Private Limited contesting an adjudication order dated 19 January 2026, passed via the competent authority under the provisions of the GST Act.
Nishant Mishra appeared for the applicant, who said before the High Court that the proceedings suffered from jurisdictional error and breach of the norms of natural justice.
It said that the SCN initially offered a tax demand of nearly Rs 9 crore, the impugned order validated a higher tax demand of nearly Rs 13 crore, inflating the actual demand figure by nearly Rs 4 crore.
It is a trite law that tax demand raised cannot be improved after the scope of the demand in the Show Cause Notice (SCN) preceding the order passed after adjudication.
The Division Bench, including Justice Saumitra Dayal Singh and Justice Indrajeet Shukla, heard submissions from Arvind Kumar Mishra, the Standing Counsel of the State-respondents.
The Allahabad High Court acknowldging the situation, allotted 4 weeks to the State to submit a counter affidavit in the case. The applicant was given a 2 weeks to file a rejoinder affidavit.
Read Also: Why You Need Sales Reconciliation in the GST Software
The Division Bench ordered that the operation and effect of the impugned order on 19th January 2026 shall remain stayed till the next listing date.
| Case Title | M/S Dell International Services India Pvt. Ltd. vs. State of U.P. |
| Case No | Writ Tax No. – 801 of 2026 |
| Counsel for Petitioner | Nishant Mishra, Vedika Nath |
| Counsel for Respondent | C.S.C. |
| Allahabad High Court | Read Order |
