E.Ravi Kiran Reddy and 25 Others Vs State of… — GST and Indirect Tax | Telangana HC (2025)

E.Ravi Kiran Reddy and 25 Others Vs State of… — GST and Indirect Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

Impugned DRC-01/DRC-07 notices and orders set aside (being unsigned); consequential bank attachments revoked; liberty reserved to respondents to issue fresh show cause notices/orders in accordance with law with limitation expressly not to be a hurdle; writ petitions disposed of without expressing any opinion on merits and without costs; pending interlocutory applications closed.

Issue for consideration

Whether the impugned GST show cause notices and demand orders (Forms DRC-01/DRC-07) under the Telangana/CGST GST framework — challenged as unsigned and procedurally defective (absence of Form DRC-01A/DIN, barred by limitation, garnishee bank attachments) — ought to be set aside, with consequential revocation of bank attachments and liberty to the authorities to issue fresh notices/orders.

Court's answer

Since the impugned notices and orders are unsigned, they are set aside in view of the common order in W.P.No.21101 of 2024 & batch dated 28.02.2025: the impugned notice(s) and order(s) in these Writ Petitions are set aside.

Ratio / Principle

Any consequential bank attachment(s) made pursuant to the impugned notices/orders shall stand revoked.

Key takeaways

Liberty is reserved to the respondents to issue fresh show cause notice(s)/order(s) in accordance with law; in undertaking the exercise afresh, limitation will not be a hurdle for the respondents.ratio¶¶67-68
The Writ Petitions are disposed of without expressing any opinion on the merits of the case, and without costs.ratio¶¶69-70
Pending interlocutory applications, if any, shall stand closed.

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (Special Original Jurisdiction); Acting Chief Justice Sujoy Paul & Justice Renuka Yara; 04.07.2025; W.P.Nos.17904, 18010 & 18011 of 2025 (common order). Three taxpayers — M/s. Vedaspace Constructions Pvt. Ltd., M/s J.A.R. Mobility Solutions and M/s. Sai Manikanta Traders — challenged unsigned GST demand orders in Form DRC-07 (with related DRC-01 show cause notices, an Assessment Order dated Nil and garnishee notices attaching ICICI bank accounts) issued under Section 73 of the Telangana/CGST GST Acts, 2017 for April 2019–March 2020 and tax period 2020-21, alleging defects including want of physical/digital signature, omission of Form DRC-01A (Rule 142(1A)), absence of DIN, and challenging Notification No. 79 of 2020 (15.10.2020) and G.O.Ms No.24, Rev. (CT-II) Dept. (09.02.2021) amending Rule 142(1A). Following the Court's own common order in W.P.No.21101 of 2024 & batch dated 28.02.2025, the Court set aside the impugned notices/orders, directed that consequential bank attachments stand revoked, reserved liberty to the respondents to issue fresh show cause notices/orders with limitation expressly not to be a hurdle, disposed of the writ petitions without expressing any opinion on merits, without costs, and closed pending interlocutory applications.

[³⁴⁴⁶¹

IN THE HIGH COURT FOR THE^{STATE OF TELANGANA} AT HYDERABAD

(Special Original Jurisdiction)

FRIDAY, THE FOURTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE THE ACTING^{CHIEF JUSTICE SUJOY PAUL} AND THE HONOURABLE SMT JUSTICE RENUKA^YARA

WRIT PETITION NO: 17904 18010^{& 18011 0F 2025}

W.P.No.17904 OF 2025

Between:

tvl/s. Vedaspace Constructions Pvt. Ltd.,^{Plot No. 12171A, 2nd-Floor, Laxmi Veda} Ark, Road No.36, Jubilee Hills,^{Hyderabad,Telangana - 500033 represented-byits} Director Sri Sriraja Chintalapati Vehkata^{SeethaRamamu{n!} !fl!,.^{S- o.-p1i} 9.^A.y.R Sriraja Chintalapati aged about^{43 years,R o.-H. No. 15-3'2411118,Flat No. S-1,} Gok6ale Road, Maharanipet.^{NearCountryClub, Samrat, EnclaveApartment,} Visakhapatnam^- 530002, Andhra^Pradesh.

...PETITIONER

AND

Assistant Commissioner^{(State Tax), Jubilee Hills lll Circle'Punjagutta,} Telangana.

State of Tetangana, Rep. by its^{PrincipalSecretary,(Revenue)CG} Department, Telangana, Secretariat^{Buildings, Hyderabad.}

The Branch Manager, lClCl^{Bank Limited, BanjaraHills, Road No. 14,} Hyderabad - 500034.

...RESPONDENTS

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, order or direction, more^{particularlyin the natureof a writ} of mandamus^{viz., (i) declaring Show Cause Notice issued in DRC - 01 dated} 31105t2024 bearing^{Reference No.2D3605240814431) and the consequent order} daled 2BtOBl2O24^{bearing ReferenceNo. 2D3608241242299 passedin Form} DRC - 07 under Section^{73 of the Telangana Goodsand Services Tax Act, 2017} passed by the Respondent No. I for the^period April,^{2019 to March,2O2O as}

:'i:. . .trjll!e{r.,}.i

being unsigned, void, arbitrary, illegal, violative of the principles of natural justice apartfrom being N iolative of Articles 1a, 19(1Xg) of the Constitution of lndia and consequently set aside the same, and to set aside the garnishee notices dated 0710312025 attaching the bank account of the Petitioner Company bearing A/c Nos. 236501000033 and 236505000085 respectively maintained with Respondent No.3 intimated vide communications dated 0410612025 for recovery of alleged dues for the year 2019-20.

lA NO: 1 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further action including collection of disputed tax pursuant to the Show Cause Notice issued in DRC - 01 dated 3110512024 bearing Reference No. 2D36O524081442D and the consequent order dated 2BlOBl2O24 bearing Reference No. 2D3608241242299 passed in Form DRC - 07 under Section 73 of the Telangana Goods and Services Tax Act, 20'l 7 passed by the Respondent No. '1 for the period April, 2019 to March,2O2O under the provisions of TSGST Act, 2017.

Counsel for the Petitioner : SRI A.V.RAGHU RAM

counser ror the Respono""' ' tTl.3H?3flt?ir"J+tf

W.P.No.18010 OF 2025

Between:

M/sjAR.^{M9{!itySolutions, Plot No.38, Yousufnagar,Near MMTS Borabanda,} Hyderabad. State of Telangana. Rep. by its^proprietoi wr.Mond. Rameez Ahmed.

...PETITIONER

AND

The Assistant Commissioner (ST), Hydernagar-ll Circle, Hyderabad. 2. The State .ol Telangana, Rep. by its. principal Secretary, Revenue (CT) Department, Telangana Secretariat, Hyderabad.

3 The Central Board of lndirect Taxes and Customs, Rep. by its Chairman, Ministry.of Fjlql"^", Department of Revenue, North Biock,'Ceritrat SeCretirlit, New Delhi -100 001 .

...RESPONDENTS

Petition under Article 226 of lhe Constitution of^{lndia praying that in the} circumstances stated in the affidavit filed therewith,^{the High Court maybe} pleased to issue Writ of t/andamus or any other appropriate Writ or^Orderor Direction declaring. (1) the action of the 1st Respondent^{in passingthe Order,} daled 271O212025, the Summary of the Order in Form^{GST DRC-07'dated} 27 tO2l2O25 and the Assessment Order, dated Nil, are barred^{by limitation, without} any signature either^physically or digitally, is nonest^{in the eye of law, (2) the} action of the^'1st Respondent .in^passing the^{Order. dated 2710212025,the} Summary of the Order in Form GST DRC-07,^{dated 2710212025and the} Assessment. Order, dated Nil, without issuing Form^{GST DRC-01Aas} contemplated under Rule 142(1A) of the Rules 2017,is^{not valid in the eyeof law,} (3) the action of the^'1st Respondent in issuing Show Cause^{Notice, dated} 28111t2O24 and^passing the Order, dated^{2710212025, the Summary of the Order} in Form GST DRC-07, dated 2710212025, and the^{Assessment Order,dated Nil,} without generating Document ldentification Number^{(DlN), for the tax period} 2O2O -21 under the SGST/CGST Acl²⁰¹ 7,^{is contrary to Ci rcular No.128I 47I 20 1 I -} GST, dated 23t12t2019 and the^judgement of the^{Honoruable Supreme Court of} lndia in W.P.(Civil) No.320 of 2022, daled^{1810712022, and consequentlyset} aside the Order, dated 2710212025, the Summary^{of the Order in FormGSTDRC-} 07, dated 27.0212025 and the Assessment Order,dated^{Nil, passed by the 1St} Respondent, for the tax^period 2020-21 under^{the SGST/CGST Act 2017, as null} and void.

lA NO: 1 OF 2025

Petition under Section 151 CPC^praying that in the^{circumstances statedin} the affidavit filed in support of the^{petition, the High Courtmay be pleased to} Suspend the Operation of the Order, dated 2710212025,^{the Summary of the} Order in Form GST DRC-07, dated^271O2t2O25 and^{the Assessment Order, dated} Nil,^passed by the 1st Respondent, for the tax^{period 2020-21 under the} SGST/CGST Acl 2017,^pending disposal of the above^{WritPetition,as otherwise'} the Petitioner will be^put to severe^loss and^hardship.

Counsel for the Petitioner : SRI MOHAMMED RAFI

counser ror the Respono""" ' t;l.BHtBRt?i.tx+t#

W.P.No.18011 OF 2025

Between:

M/s. Sai Manikanta Traders,tlaving address at Sy. No. 25, plot No..l0, Rampally X Road, Nagjlram, Kggsara, Rangareddy, Telangina- 500068 Represented'by'its ilgplglo^,^{Polangari.Bal.Reddy,aged ibout 51 years, S/o. p Sathi Reddy, R/o.4-} 88/41 109., . Prashanthi Nagar Colony, Rampally X Road, Nagaram,^-Keesara, Rangareddy, Telangana- 500083

...PETITIONER

AND

1 T.he State Tax Officer, (ees-a1q- 1 Circle, Malkajgiri 5th Floor, C.T. Complex, Nampally, Hyderabad - 500 001

2 State of Telangana, Through Principal Secretary to Government Revenue Department (Commercial Tax), Hyderabad, Telanjana

3 Union of.lndia. tvlinistry of Finance, Represented by its Secretary, North Block, New Delhi-'1 10 001

4 Central Board of lndirect Taxes and Customs, GST policy Wing, New Delhi Rep by its Commissioner

...RESPONDENTS

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, order, or direction more particularly one in the nature of a writ of Mandamus (i) Declaring show cause notice in Form DRC 01 vide Ref no. 2D361124029125S dated 26.11.2024 and an order in DRc-07 vide ref. no. 2D36o225070613J dated 24.o2.202s both issued by the lst Respondent under the provisions of CGST/TGST Act,2O1l as being void, arbitrary, illegal, without jurisdiction and without authority of law apart from being violative of principles of natural justice and being violative of Articles i a, 19(1 Xg) and 265 of the constitution of lndia, and to consequenfly set aside any action taken pursuant thereto and pass such further or other order(s) as this Hon'ble court may deem fit and proper in the circumstances of the case. (ii) declare the Notification No. 79 of 2020 daled 15.10.2020 issued bythe Respondent No. 4 amending the Rule 142 ( lA) of the central Goods and services Tax Rules, 2017 and corresponding G.O.Ms No.24, Rev. (CT-11) Dept., dated Og.O2.2O2.t issued by Respondent No. 2 amending Rule^'142(1A) of rGST Rules, 2017 as being without authority of law

and ultra vires to the Section^{73(5) of the centralGoods and servicesIax Act,} 2017 and violative of Articles^{1 a, 1 9( 1} Xg)^{and 21 of the constitutionof lndia as} ,/:. being without authority of^{law and ultra vires to the section 73(5)of the central} Goods and Services Tax Act,^{2017andviolative of Articles 14, 19(1)(g)and 21 of} the Constitution of lndia.

lA NO: 1 OF 2025

Petition under Section 151 CPC^{praying that in the circumstances statedin} the affidavit filed in support of the^{petition,the High court may be pleased pleased} to stay of operation of impugned^{order in DRC-07vide ref no.2D360225070613.1} daled 24.02.2025 issued by the^{RespondentNo. 1 for the tax period2020-21} under CGST/TGST Acts, 2017^{pendingdisposal of the above writ Petition,as} otherwise, the Petitioner will be^{put to severe loss and hardship".}

Counsel for the Petitioner^{: SRI V.VEERESHAM}

c o u n s e I f o r th e Res^po n o , " "., :Ti.BH?BR??ir"J+.ff

The Court made the following:^{COMMON ORDER}

':rr ;,{}c*,€=t 7 / ----

THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL

AND

THE HON'BLE SMT. JUSTICE RENUKA YARA

WRIT PETITION Nos. t79o4 18O1O and 18O11 of2025

COMMON ORDER: (Per the Hon'bte the Acting Chief ,Iustice Sujog paul)

Learned counsel Sri A.V.Raghu Ram, Sri Mohammed Rafi and Sri V.Veeresham for the petitioners and Sri Swaroop Oorilla, Iearned Special Government Pleader appearing for State Tax.

\ \

Regard being had to the similitude of the questions involved, on the joint request of learned counsel for the parties, the matters are analogously heard and decided by this common order.

\ t

Learned counsel for the petitioners and learned Special Government Pleader for State Tax submitted that since the impugned notice(s) and order(s) are unsigned, the same may be set aside in vieu, of the common order passed in W.p.No.211O1 of 2024 &, batch, dated2B.O2.2O25.

Accordingly, the impugned notice(s) and order(s) in these I Writ Petitions are set aside. The consequential bank I attachment(s), if any, shall a,lso stand revoked. Liberty is reserved

2

to the respondents to issue fresh show cause notice(s)/ order(s) in

accordance with law and, for undertaking this exercise afresh, the limitation will not be a hurdle for the respondents.

The Writ Petitions are disposed of without expressing any

opinion on the merits of the case. No costs.

Interlocutory applications, if any pending, sha1l also stald

closed.

SD/-MOHD.ISMAIL DEPUTY REGISTRAR

//TRUE COPY//

SECTION OFFICER To, lls lll Circle,^Punjagutta, 1 . The Assistant^{Commissioner (State Tax), Jubilee} Telangana.

The Frincipal^{Secretary,(Revenue)CG Department' Telangana' Secretariat} Buildings, State^{of Telangana, Hyderabad'}

g. ine n"-siitunt Commissioner (ST), Hydernagar-ll^{Circle'Hyderabad'}

The chairman,^{Ministryof Finance, beparthent of Revenue,centralBoard of} lndirectTaxesandCustoms,NorthBlock,Centralsecretariat,NewDelhi-100 001.

s. i6" state^{Tax Officer, Keesara_ 1 Circle,IVlalkajgiriSth Floor, c.T. complex,} Nampally, HYderabad^{- 500 001}

The'Principil^{Secretaryto GovernmentRevenue Department(Commercial} Tax), State of Telangana,^{Hyderabad' Telangana}

z. ffre"secretary,^{Unio-nof inaia, Ministry of Fiiance'North Block' New Delhi-110} 001

B. One CC to^{SRI V.VEERESHAM'Advocate IOPUC]}

One CC to^{SRI A.V.RAGHURAM, Advocate lOPUCl}

10.One CC to SRI^{MOHAMMED RAFI, Advocate' [OPUC]}

ii.O"" CC to SRI^{SWAROOP OORILLA,SPLG'P for State Tax' [OPUC]} 12.Two CD^CoPies.

BSK

LS

HIGH COURT

DATED:0410712025

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COMMON ORDER

WP.Nos.17904,18010 & 18011 ot 2025

DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS

Cite this judgement

E.Ravi Kiran Reddy and 25 Others v. State of Telangana and another, WP/1030/2020 (TEL), decided on 9 June 2025.

The High Court for the State of Telangana publishes no neutral citation for this judgement — cite it by case number and date of decision.

Cases cited2

W.p.No.211O1 of 2024 &, batch, dated2B.O2.2O25Followed¶¶64
W.P.(Civil) No.320 of 2022, daled1810712022Referred¶¶32

Open Authorities

Statutes12

Constitution of IndiaArticle 226 · Articles 14, 19(1)(g) and 21 · Articles 14, 19(1)(g) and 265
Telangana Goods and Services Tax Act, 2017Section 73 · TSGST Act, 2017
Code of Civil ProcedureSection 151
GST Rules, 2017Rule 142(1A)

View all statutes

Procedural history5

Unsigned GST demand documents challenged in the three writ petitions: (a) W.P.No.17904 of 2025 – order dated 28/08/2024 (Ref. No.2D3608241242299) in Form DRC-07 under Section 73 of the Telangana Goods and Services Tax Act, 2017, with DRC-01 dated 31/05/2024, for April 2019–March 2020, plus garnishee notices dated 07/03/2025; (b) W.P.No.18010 of 2025 – Order dated 27/02/2025, Summary of Order in Form GST DRC-07 dated 27/02/2025 and Assessment Order dated Nil for tax period 2020-21; (c) W.P.No.18011 of 2025 – order in DRC-07 dated 24.02.2025 (Ref. 2D360225070613J) with SCN in Form DRC-01 dated 26.11.2024 (Ref. 2D361124029125S)State Tax authorities, Government of Telangana (Assistant Commissioners (ST) / State Tax Officer) under the Telangana/CGST GST Acts, 2017
Show Cause Notices in Form DRC-01 preceded the demand orders in Form DRC-07 in each petition (e.g., DRC-01 dated 26.11.2024 and DRC-07 dated 24.02.2025 in W.P.No.18011 of 2025)
Garnishee notices dated 07/03/2025 attached the petitioner-company's bank accounts Nos. 236501000033 and 236505000085 with ICICI Bank (Respondent No.3), communicated on 04/06/2025, for recovery of alleged dues for 2019-20 (W.P.No.17904 of 2025)

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Bench / Coram

Sujoy Paul and Renuka Yara

Parties & counsel