The Delhi High Court in the case of Vinod J Sharma versus UOI & Ors vide Case No. W.P.(C) 2129/2026 has issued notice to the Union Government in a writ petition challenging the constitutional validity of the Health Security and National Security Cess Act, 2025 (Act No. 35 of 2025), raising significant questions on the scope of Parliament’s taxing powers after the introduction of GST through the 101st Constitutional Amendment Act.

The petitioner has questioned the legislative authority of Parliament to levy the Health Security and National Security Cess (HSNS Cess), which came into effect from 1 February 2026. It has been contended that the cess, in substance, operates as a duty of excise on goods such as pan masala (CTH 2106 90 20).

Relying on the framework introduced by the Constitution (101st Amendment) Act, 2016, the petitioner argued that once indirect taxes like excise duty (except on limited products) have been subsumed under GST, Parliament cannot reintroduce a similar levy under the guise of a cess. It was further submitted that residuary powers cannot be invoked for matters already covered within the GST regime.

Further, apart from legislative competence, the petitioner also challenged the basis of quantification of the cess. The levy is imposed based on the weight of pan masala pouches, without reference to their price.

The High Court noted the prima facie merit in the submissions concerning both legislative competence and arbitrariness in computation, sought a response from the Union of India. The outcome of the case is poised to have far-reaching implications on the interplay between cesses and the GST framework, particularly in determining the extent to which the Union can impose additional levies on goods already subsumed under GST.

Case Name: Vinod J Sharma vs Union Of India & Ors on 16 February, 2026 vide Case No. W.P.(C) 2129/2026 & CM APPL. 10354/2026