Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Del) 807

IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J
Priyanka Jaiswal – Appellant
Versus
Northern Railway – Respondent
W.P.(C) 299/2026 | CM APPL. 1410/2026 | CM APPL. 1411/2026

Advocates:
For the Appellants/Petitioners: Aarzu Khattar, Parv K. Garg
For the Respondents: Sahaj Garg, Deepanshu Sharma, Avinash Khatri

Whether public convenience services, specifically the maintenance of pay-and-use toilets, qualify for GST exemption under Entry No. 76 of Notification No. 12/2017.

Headnote:This matter concerns a challenge to the imposition of Goods and Services Tax (GST) on license fees paid by the petitioner for the operation of public toilet facilities. The petitioner relies upon Exemption Notification No. 12/2017, Central Tax (Rate) dated 28th June, 2017, specifically Entry No. 76, to argue that such services are exempt. The court found that prima facie, the petitioner established grounds for interim relief, noting that the balance of convenience favoured the petitioner to prevent irreparable injury. The core issue is whether the services rendered by the petitioner, as defined under Heading 9994, fall within the ambit of tax-exempt public convenience services. The ratio decidendi rests on the finding that where a service appears prima facie exempt under a binding Notification, continuing to levy tax through invoices causes irreparable prejudice, warranting a stay on such recovery during the pendency of the petition. The court granted interim relief restraining the respondents from recovering GST on the license fees, while directing the petitioner to continue discharging the underlying license fee obligations.

Table of Content
1. procedural compliance regarding interim applications. (Para 1 , 2)
2. applicability of gst exemption notifications to public convenience services. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. granting interim stay protection against tax recovery based on prima facie case. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)

O R D E R

CM APPL. 1411/2026 (exemption)

1. Allowed, subject to all just exceptions.

2. The application stands disposed of.

W.P.(C) 299/2026, CM APPL. 1410/2026

3. The present writ petition has been filed seeking quashing of the unauthorised GST levied on the license fee payable by the petitioner to the respondents.

4. In terms of the Contract dated 7th November 2024, the petitioner is engaged in the operation and maintenance of ‘Pay and Use Toilets’, at Hazrat Nizamuddin Railway Station, New Delhi, under the licences granted by the respondent no.1/Northern Railway.

5. It is the case of the petitioner that the activity undertaken by the petitioner is covered by the Exemption Notification No.12/2017, Central Tax (Rate) dated 28th June, 2017, particularly Entry No.76 read with Heading 9994.

6. For the ease of reference, the relevant part of the said Notification is reproduced below: -

Heading 9994

Services by way of public conveniences such as provision of facilities of

Nil

7. Despite the service rendered by the petitioner being exempt from Goods and Services Tax (GST) under the aforesaid Notification, the respondents have continued to issue invoices charging GST on the license fee payable by the petitioner.

8. Counsel for the petitioner contends that the petitioner is providing similar services at other parts of the country and no GST is being levied.

9. Issue Notice.

10. Notice is accepted by counsel appearing on behalf of the respondents.

11. Counter affidavit(s) be filed within six (6) weeks.

12. Rejoinder(s) thereto, if any, be filed within three (3) weeks thereafter.

13. In terms of the aforesaid narration of facts, a prima facie case has been made out on behalf of the petitioner. The balance of convenience is in favour of the petitioner and irreparable injury would be caused to the petitioner if the respondents continue to recover GST on the license fee payable by the petitioner.

14. Consequently, till the next date of hearing, the respondents shall not recover amounts towards GST from the petitioner. However, the petitioner shall continue to pay the license fees in accordance with the Contract.

15. List on 9th April, 2026.

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2026 Supreme(Online)(Del) 807

IN THE HIGH COURT OF DELHI AT NEW DELHIAmit Bansal, JPriyanka Jaiswal – AppellantVersusNorthern Railway – RespondentW.P.(C) 299/2026 | CM APPL. 1410/2026 | CM APPL. 1411/2026

Whether public convenience services, specifically the maintenance of pay-and-use toilets, qualify for GST exemption under Entry No. 76 of Notification No. 12/2017.

IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J
Priyanka Jaiswal – Appellant
Versus
Northern Railway – Respondent
W.P.(C) 299/2026 | CM APPL. 1410/2026 | CM APPL. 1411/2026