Dalapathi Constructions Vs The Assistant Commissioner… — GST and Indirect Tax | Telangana HC (2025)

Dalapathi Constructions Vs The Assistant Commissioner… — GST and Indirect Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

Writ petition dismissed as withdrawn, with liberty to file a properly constituted petition; no costs; miscellaneous petitions, if any, stand closed. No relief granted on the merits of the GST demand.

Issue for consideration

Whether the show cause notice dated 13-11-2021 (Ref. ZD3611210190921) and the consequential orders, including Form GST DRC-07 dated 30-12-2023 (Ref. 2D361223067626A) passed by the Assistant Commissioner (ST) under Section 73 of the TGST/CGST Act, 2017 for FY 2017-18 (tax Rs.5,86,740/-, penalty Rs.58,674/- and interest), issued without Form GST DRC-01A under Rule 142(1A), without the officer's signature, without DIN and without effective opportunity of hearing, are illegal, arbitrary and contrary to the CGST/SGST Acts, 2017 and the Constitution, and liable to be set aside.

Ratio / Principle

At the request of the petitioner's counsel, with no objection from the respondents' counsel, the writ petition was dismissed as withdrawn with the liberty prayed for (to file a properly constituted petition), with no order as to costs; the merits of the challenge to the SCN and the Form GST DRC-07 were not adjudicated.

Key takeaways

Miscellaneous petitions pending, if any, shall stand closed.ratio¶33

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (Special Original Jurisdiction), W.P. No. 11116 of 2025, decided 22-04-2025 (coram: Acting Chief Justice Sujoy Paul, authoring the order, and Justice Renuka Yara). Dalapathi Constructions filed a writ petition under Article 226 seeking quashing of a show cause notice dated 13-11-2021 (Ref. ZD3611210190921) and consequential orders, principally Form GST DRC-07 dated 30-12-2023 (Ref. 2D361223067626A) passed by the Assistant Commissioner (ST), Vengalarao Nagar 2 Circle, under Section 73 of the TGST and CGST Act, 2017, demanding total tax Rs.5,86,740/- (SGST and CGST Rs.2,93,370/- each), penalty Rs.58,674/- and interest under Section 50 read with Section 73(9) for FY 2017-18, alleging non-issue of Form GST DRC-01A under Rule 142(1A), absence of the officer's signature and DIN, and denial of effective hearing. An IA under Section 151 CPC sought stay of recovery. Before any adjudication, the petitioner's counsel sought withdrawal with liberty to file a properly constituted petition, to which the State had no objection. Held: the writ petition is dismissed as withdrawn with the liberty prayed for, with no costs, and pending miscellaneous petitions stand closed. The validity of the SCN/DRC-07 was left undecided and no precedent was considered.

[³⁴⁴⁶¹

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

(Special Original Jurisdiction)

TUESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSANDAND TWENTY FIVE

PRESENT

THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA

WRIT PETITION NO: 1't 116 0F 2025

Between:

Dalapathi Constructions, Represented by its Managing partner Sri Venkata Nagaraju Dalapatirao, 8-4-37619, Enagiadda, Hyderibad - 5000.t8, Dist. Hyderabad.

AND

...PET!T|ONER

'l . The Assistant Commissioner (State Tax), Vengalarao Nagar 2 Circle, Punjagutta Division, 5:9-27917th floor, B gtoc( Mayur Kulhal Compiex, Beside Chermas, Abids, Hyderabad - 500001.

The Commissioner of State Tax, State of Telagnana Commercial taxes

^^{9.orp!"1,M-J Road,Opp_ositeGandhi Bhavan,Nampafly,Hyderabad.}

The State of T_elagnana, Represented by its^principai SeCretary to Govemment,RevenueCTD,secretariat-,Hyderabbd.

...RES'ONDENTS

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, order or direction, declaring the Show cause Notice daled 13t11t2021 vide reference no. 2D36112101gOg21, ali consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated 3)t12t2023 vide reference no. 2D361223O67626A by The Assistant Commissioner (ST), Under Section 73 of the TGST and CGST Acl, 2017. The summary of under declared tax is as folows Total Tax Rs.5,86,740l- (SGST Rs.2,93,3701- and CGST Rs. 2 93,3701-), and beside leavy of penalty Total Rs.58,674I-(SGST^ps.29,3371- and CGST Rs.29,332-) and leavy of interest under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2O17fiGST Ac1,2017, for the financial year 2O17-2O1 B without even issuing Form GST DRCOI A as contemplated under Rule 1421A of the Rules 2017 without signature of the officer

concerned in the ar ::onsequentiar orders passed in pursuanca .f the said scN, including Form c;si'r DRC-07 by the 'rSt Respondent and without DIN and without even granting sufrir ent opportunity of being heard to the petiti.ner as arbitrary contrary to the provi ; ons of the CGST/SGST Acts 2017 and coltrirry to the Article 14' 1s 2 g, 21 . er d ir65 of constitution of rndia and consequenl y set aside the scN dated 13,t1' rz( :?.1 and ar consequentiar orders .passed ir p:rsuance of the said SCN, includi.r 3^:,:rrm GST DRC-07 as illegal null and void

lA NO: 't OF 2025

Petition un C lr :Section 151 CPC praying that in the circ:rnsr:ances stated in the affidavit filed n s upport of the petition, the High Court mav be pleased to stay all further proceedinr s including any recovery, pursuant to the Sho w cause Notice dated 1311112021 t,x e: reference no. ZD36l 1210190921 , all conse:quential orders passed in pursualtoe 'rf the said SCN, including Form GST DRC_02 order passed daled 3ol12l2O2:t , ide reference no. 2D361223067626A Ly The Assistant Commissioner (S'f r, l]nder Section 73 of the TGST and CGST,,\ct, 2017. The summary of unde,r r eclared tax is as follows: Total Tax Rs.5,gri,740l_ (SGST Rs.2,93,370/- antl ( tlST Rs.2,93,3701-), and beside leavy, of penalty Total Rs.58,674l-( SGST 1s.29,3371- and CGST Rs.29,337/-) anrj teavy of Interest under section 50 of he CGST Acl, 2O1l as prescribed under st,rction 73(9) of CGST Act, 2Y7fic l'l Act, 2017 , for the financial year 20 17-2018 pending disposal of writ pel itio

Counsel for the Petit cner: SRt UpADHyAy RAGHAVENDER COUNSEI fOr thE RE:;P rNdENtS: SRI T.CHAITANYA KTRAN FOR SRI SWAROOP OORILLA, Special Govt pleader for State Tax

The Court made the f,rllowing: ORDER

l'

THE HON,BLE^{THE ACTINGCHIEF JUSTICE SUJOY PATIL'}

AND

THE HON,BLE^{SMT JI'STICERENUKA YARA}

WRIT^{PETITION NO.111 16 0F2025}

ORDER:^{(Perthe Hon'ble the Acting Ctuef JusticeSujog Paut)}

Sri Upadhyay^{Raghavender'learned colrnsel for the}

petitioner,^{seeks to withdraw this writ petitionwith the liberty to} file a^{properly constituted petition'}

Sri^{T'ChaitanyaKiran'learnedcor-rnsel representing} Sri Swaroop^{Oorilla' IearnedSpecialGovernment Pleadet for the} respondent-State^{Tax' has no objection'}

Accordingly,^{the Writ Petition is dismissedas withdrawn} with the^{liberty prayed for' No costs'}

Miscellaneous^{petitions pending'if any' sha1l stand closed'} SD/-P. CH.^{NAGABHUSHA-MBA} -"' '^' -'bEPUw REGISTRAR

/TTRUE^COPY//

SECTION FICER

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HIGH COUFI'I-

DATED:2210a,1292U

/

ORDER

WP.No.11116 ot 2025

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DISMISS!NG'I-HE WRIT PETITION AS WITHDRA A/N WITHOUT COSTS

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