Disposed

M/s. Vemulapalli Brothers v. Assistant Commissioner (Central Taxes)

Telangana HC15 Sept 2022WP/11307/2019

Case brief

AI extract

What is this about?

The High Court of Telangana disposed of WP No.11307 of 2019, challenging GST Rules and penalties, as the issues were already covered by the Supreme Court's judgment in Union of India v. Filco Trade Centre Pvt. Ltd., following an earlier High Court order.

What did the court decide?

No relief granted; writ petition disposed of without any order as to costs.

M/s. Vemulapalli Brothers Vs Assistant Commissioner… — GST and Indirect Tax | Telangana HC (2022)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

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THURSDAY, THE FIFTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENry TWO

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PRESENT

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THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C. V. BHASKAR REDDY

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WRIT PETITION NO: 11307 OF 2019

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Between:

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M/s. Vemulapalli Brothers, rep. by its Partner, Mr. V. Sudhakar Prasad Shop No.11-17511711), Fathenagar, Hyderabad - 500 018

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...pE,TtoNER

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AND

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Assistant Commissioner (Cenkal Taxes), Kukkatpally Division, Hyderabad 2. Superintendent of Central Tax, Fathenagar Range, Hyderabad.

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Commissioner of Goods and Service Taxes, Ferozguda, Hyderabad 4. Goods and Services Tax Network GSTN, rep. by Chairman East Wing, 4thFloor World Mark 1 , Aerocity, New Delhi - 1 10037

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Goods and Service Tax Council, rep. by Secretary, SthFloor Tower ll, Jeevan Bharti Building, Janpath Road Connaught Place, New Delhi-1 10 001.

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State of Telangana, rep. by its Principal Secretary to Government, Revenue (SGST) Department, Secretariat, Hyderabad

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Union of lndia, rep. by its Secretary, Ministry of Finance Department of Revenue North Block, New Delhi-1 10001

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B. Commissioner of Central Tax, State of Telangana, Hyderabad

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..RESPONOENTS

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Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction -

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(a)declaring Rule 117(1) and the proviso thereto of both the CGST Rules, 2017 and Telangana GST Rules, 2017 lo the extent they prescribe a time limit of ninety days for filing Form GST TRAN-1 as illegal and ultra vires Section 140, 164 and 174(2)(c) of the Central Goods and Service Tax Act, 2017 and Section 140,164 and 17 4(2)(c) of the Telangana Goods and Service Tax Act 2017 respectively and as also being arbitrary and unreasonable and violative of the provisions of Article 1a, 19(1)(g) and 265 of the Constitution of lndia,

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(b)declaring⁽ rder No.3/2017-GST dated 21 .9.2017,^()rrler No7/2017-GST dated 28j02017 a d Order No 9/2017-GST dated 15.11.',1('l / issued by theTth Respondent as beit g ultra vires Section 140,164 and 17 4 2)(c) of the Central Goods and Service^' ax Act 2017 ,

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(c)declaring order of the 6th Respondenl vi,Je CCT Ref.in ccwtcsrfi4/2015 lated 21.9.2017as ultra vires Section^'t0,164 and 174(2)(cl of the Telangana Gc rds and Service Tax 4ct2017,

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(d)to declare he action of closing the facility to file F r rm GST TRAN-1 on the common portal c www.gstgov.in from 28.12.2017 as illeg,rl (e)to direct th : Respondent No 1 and 4 to accept the Fornr GSf TRAN-I manually a nd.

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(f)the Honour rble court may be pleased ,o ru1 65irJr: levy of ;:enalty of Rs.42,25,655i- as ilk gal arbitrary and in the facts and circunr{ tanc()s of the case, (g)direct the Respondents to credit a sum of Fs 42,2ri,6551 to the Electronic Credit Le lger of the Petitioner under GSTIN Nc. 36A/,BFV3565C|ZB maintained under I re Central Goods and Service Tax \r:t, 2017 and the Telangana Goods ar i Service Tax Act 2017 respectively

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lA NO: 2 OF 2020

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Petition under Section 151 CPC praying that in the circ:rnstirnces stated in the affidavit filed in support of the petition, the High Court n'ay be pleased to grant stay of recovr ry of disputed demand of Rs.96,09,95C/- pJrsuant to the orders dated 27 12.'.019 & 25.7.2019 of the Joint Commiss oner (Appeals) and the 1St Respondent pending disposal of the Writ Petition t'l,r^'1317 of 2019, as otherwise the Petitior er will be put to severe loss and hardst ip.

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Counsel for the Peti ioner: SRI SHAIK JEELANI BASHA CCIIINSEL FOR SRI RAVIKIRAN SINGH

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Counsel for Respon lent Nos. 1 to 6: SRI SWAROOP OORII- ,4, (sR sc FoR cBrT ANt) cusToMS)

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Counsel for Respon lent No. 7: SRI B. MUKHERJEE

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The Court made the bllowing: ORDER

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THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN

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AND

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THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY

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WRJT PETITION No.113O7 of 2O\9

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ORDER: (Per tle Hon'bte ttle ChieI Justice Ujjal Bhuaan)

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Heard Mr. Shaik Jeelani Basha, learned counsel for the petitioner; Mr. Swaroop Oorilla, learned counsei for respondents No. I to 6 and 8; and Mr. B. Mukherjee, learned counsel for respondent No.7.

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By liling this writ petition under Article 226 of the Constitution of India, petitioner has prayed for the following reliefs:

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"(a) declaring RuIe 117(1) and the proviso thereto of both the CGST Rules, 2Ol7 and Telangana GST Rules, 2017 to the extent they prescribe a time limit of ninety days for filing Form GST TRAN- I as illegal atd, ultra uires Section I4O, 164 & 17 aQl@l of the Centra-l Goods and Sen'ice Ta-r Act,2Ol7 and Section l4O, 164 and 174(2)(c) of the Telangana Goods altd Sen'icc Ta-t Act, 20 17. respectively and as also being a.rbitrary and unreasonable and violative of the provisions of Article 14, 19(1)(g) and 265 of thc Constitution of India;

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(b) der laring Order No.3/2017-GST dated 21.9.:.',O17, Or ter No.7 f 20 l7-GST dated 28. 1O.2O 1'Z and Or ter No.9/2017-GST dated 15.11.2017 ir.sued by the 7th respondent as being ultro vires fk ction 14 ), 164 and 17 a(2llcl of the Central Gooi,,r zurd Se vice Tax Act,2017;

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(c) de laring order of the 6th respondent vice OCT Re. in CCW/GST|74/2O15 dated 27.9.2).7 as ult'a uires Section 140, 164 & 17 4{21(c) r f the Te angana Goods arrd Service Tax Act 201.7;

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(dr to declare the acLion of closing the facilitl^':o f-rle Fc^'m GST TRAN- 1 on the common pc,r .aJ o1' w'w gstgov.in from 28.12.2017 as illega!.

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(e) to direct the respondent No.1 and 4 to actept tht, Fr rm GST TRAN- I manually and

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tfl th : Hon'ble Court may be pleased to se t asidr: le y of penalty of Rs.42,25,655 /- as llegal, ar ritrary and in the facts and circumstances of th : case;

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(e) tli ect the respondents to credit a :;r m of R .42.25,655/- to the Electronic Credit L,:rtger of tt:: petitioner under GSTIN No. 3, AABFV3565CIZB maintained under the⁽ entral G rrrrls and Service Tax Act, 2017 , an d th: T langarra Goods a:nd Service Tax Act, 2017, r( spectivelv and pass such other orders thlt this

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Honble Court may deem fit in the interest of justice."

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Learned counsel for the parties srs in agreement that the present writ petition is covered by a decision of this Court dated O8.O8.2O22 passed in W.P.No.15O82 of 20 18 and batch.

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Order dated O8.O8.2O22 passed in W.P.No.l5O82 of

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20 1B and batch reads as under:

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"3. This bunch of writ petitions have been hled before this Court seeking a direction to the r€spondents to grant further time to the petitioners to hle revised Form GST TRAN- 1 and TRAN-2 or to file fresh Form GST TRAN- f and TRAN-2 for various reasons as mentioned in the respective writ petitions.

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The writ petitions were extensively heard on 2O.O7.2022 and was reserved for^judgment. ln the meanwhile, we were informed that the issue raised in this bunch of writ petitions have been decided by the Supreme Court in Union of India v. Filco Trade Centre hrt. Ltd. (2022 SCC Online SC 9 l2). Accordingly on mention being made, the bunch of ult petitions has again been listed today.

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We have perused the order of the Supreme Court in Filco Trade Centre Pvt, Ltd. (supra). The order reads as under:

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I i i :

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"3 Having heard leamed Additional Solicitr,r G neral, learned counsel appearing for differert Sr rtes and learned counsel appearing for different pr varc parties and having perused the record, ue ar r o. the view that it is^just and proper to issue tl e fc .orting directrons in lhese cases:

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Goods and Service Tax Network (GSTN)^Ls directed to open common portal for filirrg concerrred forms for availing Transition 1l Crcdit rhrough TRAN I and TRAN-2 for t!'c months i.e. w.e.(. O1.O9.2022 to31.10.202:1.

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2 Considcring thc Judgments of the Hi1;h Courts on the then prevailing peculi rr circumstances, any aggrieved registercC assessee is directed to file the relevant forrr or revisc the already filed form irrespective o wheth( r thc taxpaver has liled writ petiti(,r bcforc the lligh Court or whether the case o thc taxpayer has been decided )) Information Technologr Grievance Redresra Commrttee (ITCRC). GSTN has to ensure that there are r, tcchnical glitch during the said time.

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4 The concerncd ofllcers are given 9O dayr thcrealter to verify the veracity of t1( claim/transitional credit and pa sr appropriatc orders thereon on merits afre grantilrg appropriate reasonable opportunlt to the partles concerned. Therc.rfte.. the allowed Transitional creclit i, to be reflected rn the Electronic Creii . t-e d ger. If required CST Council may also rssu: appropriate !$idelines to thc fiol . formaLions in scruitinizing the claims.'

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jearned counsel for the parties are in agr eement that t re above direction of the Supreme Cou rt sullicie ltly covcrs thc interest of the pefjtioners. No gricvan )e of the petitioners subsist thereafter.

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r vieu, o[ abovc and in the light of the d,x ision of the Su rrcme Court in Filco Trade Centre I.t, Ltd.

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(supra), this bunch of Writ^{Petitionsare disposedof'}

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However, there shall^{be no order as to costs."}

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5 Accordingly and in^{the tight of the above,the present}

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writ petition is also^{disPosed of.}

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Miscellaneous applications^{pending,ifany, shall}

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stand closed. However,^{thereshall be no order as to costs'}

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sD/- K. MAJI ASSISTANT RE TRAR

/ITRUE COPY//

SECTION OFFICER

To,

The Assistant Commissioner (Central Taxes), Kukkatpally Division, Hyderabad

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The Superintendent of Central Tax, Fathenagar Range, Hyderabad. 3 The Commissroner of Goods and Service Taxes, Ferozguda, Hyderabad 4. The Chairman, Goods and Services Tax Network GSTN, East Wing, 4thFloor World Mark 1, Aerocity, New Delhi - 110037

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E The Secretary, Goods and Service Tax Council, 5thFloor Tower ll, Jeevan Bharti Building, Janpath Road Connaught Place, New Delhi-1 10 001.

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1. The Principal Secretary to Government, Revenue (SGST) Department, State of Telangana, Secretariat, Hyderabad

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The Secretary, Ministry of Finance Department of Revenue, Union of lndia, North Block, New Delhi-1 10001 .

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o The Commissioner of Central Tax, State of Telangana, Hyderabad o One CC to Sri Ravikiran Singh Advocate [OPUC] 10 One CC to Sri Swaroop Oorilla(SR SC FOR CBIT AND CUSTOMS) Advocate loPUCl

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