M/s.a S Metcorp Private Limited, Vs The Deputy… — GST and Indirect Tax | Telangana HC (2025)

M/s.a S Metcorp Private Limited, Vs The Deputy… — GST and Indirect Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

All show cause notices and Orders-in-Original in the batch of five writ petitions set aside with liberty to the Department to issue fresh show cause notices and provide supporting material, and to proceed and decide in accordance with law without being inhibited by limitation; writ petitions disposed of without expressing any opinion on merits and without costs; pending interlocutory applications (including suspension, garnishee revocation and impleadment applications) stood closed.

Issue for consideration

Whether the show cause notices and the consequential Orders-in-Original passed under Section 74 of the TSGST/CGST/IGST Act 2017 (with Form GST DRC-07 summaries and attachments) are vitiated because the adverse material on whose strength they were issued/founded was not supplied to the petitioner. +5 more

Court's answer

In view of the consensus arrived at between the parties, all the show cause notices and the Orders-in-Original in this batch of matters are set aside, reserving liberty to the Department to issue fresh show cause notices and provide the supporting material to the petitioner; the petitioner's counsel raised no objection to this course.

Ratio / Principle

The Department may proceed afresh and decide the matters in accordance with law, and for undertaking that exercise limitation will not come in the way of the Department.

Detailed headnote1 paragraphs

GST - Adjudication under Section 74 of the TSGST/CGST/IGST Act 2017 - Non-supply of adverse material - Consensual setting aside. Five writ petitions (Article 226) by M/s A.S. Metcorp Private Limited, represented by its CEO Piyush Mehta, challenged the Orders-in-Original dated 18.05.2024, 19.06.2024 and 08.10.2024 passed under Section 74 of the TSGST/CGST/IGST Act 2017, the Form GST DRC-07 summaries and the Attachments to DRC-07 for tax periods 2018-19, 2019-20, 2020-21, 2021-22 and 2022-23 (aggregate stated demand of about Rs. 70.5 crore), and the garnishee notices in Form GST DRC-13 dated 10.02.2025, alleging non-supply of the books of account seized on 16.12.2023 and of the adverse material, non-service of the Form GST INS-01 authorizations (Section 67 r/w Rule 139), denial of hearing, unsigned orders, absence of DIN, non-issue of Form GST DRC-01A (Rule 142) and want of an effective appeal under Section 107. On analogous hearing the parties reached a consensus: the learned Special Government Pleader for State Tax submitted, and counsel for the petitioner had no objection, that since the adverse material underlying the show cause notices was not supplied, the show cause notices and consequential Order-in-Originals be set aside with liberty to the Department to issue fresh show cause notices furnishing the supporting material and proceed from that stage in accordance with law. Held, disposing of the writ petitions: (i) all the show cause notices and the OIOs in the batch are set aside with such liberty reserved to the Department; (ii) the Department may proceed and decide the matters in accordance with law, and limitation will not come in its way for undertaking that exercise; the Court expressed no opinion on merits and made no order as to costs; interlocutory applications, if any pending, stood closed. (Bench: Acting Chief Justice Sujoy Paul, author of the common order, and Smt Justice Renuka Yara; decision dated 05.03.2025.)

[³⁴⁴⁶ ]

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

WEDNESDAY, THE FIFTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE

PRESENT

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

WRIT PETITION NOS: 17938 17941 & 18148 0F 2024 AND 1005^{& 1130 0F 2025}

W.P.NO: 17938OF 2024

Between:

rr-

M/s. A S Metcorp Private Limited, Regd.Office at Flat^No.501 ,^Vishal Srinivasa Krupa Apartments RTC Colony, Hasmathpet,^{Secunderaba_d_-500} 009, Rep. by its Authorised Representative and Chief^{ExecutiveOfficer} Mr.Piyush lt/ehta.age 54^years.

...PETITIONER

AND

The Deputy Commissioner,^(STXFAC) STU-2, Begumpet^{Division,Ameerpet,} Hyderabad.

The Assistant Commissioner,^(ST) STU-2, Begumpet^{Division,Ameerpet,} Hyderabad.

The Assistant Commissioner^(ST), Bowenpally-1 Circle,^{Begumpet Division'} Ameerpet Hyderabad.

The Joint C5mmissioner (ST), Begumpet Division, Ameerpet,^Hyderqlad. 5. The State of Telangana, Rep. by its Principal Secretary,^Revenue(CT) Department, Telangana Secretariat, Hyderabad.

Th6 Union of lndia, Rep. by its Secretary, Ministry^{of Finance, North Block,} New Delhi 1 10 001

...REspoNDENTs

Petition under Article 226 ol the Constitution of lndia^{prayingthat in the} circumstances stated in the affidavit filed therewith, the^{High Court may be} pleased to issue Writ of Mandamus or any other appropriate Writ or^Orderor direction declaring the action of the^{2nd Respondent in passingthe Order,dated} 18.05.2024 issued under Section 74 of the^{TSGST / CGST i IGSTAct 2017 and} Summary of the Order in Form GST DRC-07,^{dated '18.05.2024and the action of} the Respondent in^passing the Attachment^{to DRC-07, dated 18'05.2024,tor the} tax period 2O1B-19 under the TSGST i^CGSI /^{IGSTAct 2017,levyingtax of} Rs.2,09,74,0821 and Penalty of^{Rs.4,20,30,036/-,totaling to Rs.6,30,04,118/-}

., .: ;

under the TSGST / CGST / IGST Act 2017, without providing the books of accounts and recorrls collected / seized from the Petitioner on 16.12.2023 by the 3rd Respondent, though the Authorisation issued by the Joint^{(lommissioner,} Begumpet Division, in INS-01 on 24.12.2023, without serving a copy of Authorization to thr: Petitioner, without granting sufficient opporlunity of being heard, without even signature of the Officer concerned in Order, daied 18.05.2024 issued under Secticn 74 of the TSGST/ CGST / IGST Act 2017 and Summary of the Order in Form GST DRC-07, dated 18.05.2024, without issuing Form CST DRC-0'IA as per R.ule 142 of the TSGST /CGST I IGST Rules 2017, without generating the DIN Number, as arbitrary, contrary to law, bias, frirrolous, without authority of law and in violation of Principles of Natural Justice and Rule of Law, and consequently sr:t aside the Order, dated 18.05.2024 issued under Section 74 of the TSGST / CG:ST / IGST Act 2017 and Summary of the Order in Form GST DRC-07, dated 18.05 2024 passed by the 2nd Respondent, and the Attachment to DRC-07, dated 18.{15.2024 passed by the^'1St Respondent, for the tax period 2018-19, as null and void.

lA NO: 1 OF 2024

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 suspend the operation of the Order, dated 18/05/2024 issued under Section 74 of the TSGST / CGST i IGST Act 2017 and Summary of the Order in Form GST DRC-07, dated 18.05.2024 passed by the rd Respondent, and the Attachment to DRC-07, dated 18.05 2024 passed by the Respondent, for the tax period 2018 - '19, pending disposa of the above Writ Petition, as othenyise. the Petitioner will be put to severe loss and hardship.

Counsel for the Petitioner: SRI SHAIK JEELANI BASHA Counsel for the Respondent Nos.1 TO 5: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax Counsel for the Respondent No.6: SRI B.MUKHERJEE FOR SRt cADl PRAVEEN KUMAR, Dy. SOL|C|TOR GENERAL OF tNDtA

W.P.NO: 17941 OF 2024

Between:

M/s. A S Metcorp Private^{Limited, Regd. Office at Flat No.501' Vishal} Srinivasa Krupa Apartments, RTC Colony,^{Hasmathpet, Secunderabad- 500} 009, Rep. by its Authorised Representative^{and Chief ExecutiveOfficerlvlr.} Pi,ush Mehta

...PETrroNER

AND

The Deputy Commissioner^{(ST)(FAC) STU-2, BegumpetDivision,Ameerpet,} Hyderabad.

The Assistant Commissioner^(ST) STU- 2,^{Begumpet Division, Ameerpet,} Hyderabad.

The Assistant Commissioner^(ST), Bowenpally-^{1 Circle, Begumpet Division,} Ameerpet Hyderabad.

The Joint Cdmmissioner^(ST), Begumpet^{Division, Ameerpet,Hyderabad.} 5. The State of Telangana, Rep.^{by iis PrincipalSecretary, Revenue (CT)} Department, Telangana Secretariat, Hyderabad.

ThA Union of lndia, Rep. by^its Secretary,^{Ministry of Finance, North Block'} New Delhi -^'1 loool

...RE'P.NDENT.

Petition under Article 226 of the Constitution^{of lndia prayingthat in the} circumstances slated in the affidavit^{fited' therewith,the High Court maybe} pleased to issue Writ of Mandamus or any other appropriate^{Writor Orderor} direction declgring the action of the 2nd^{Respondent in passing.the Order, dated} 18.05.2024 issued under Section 74 of the^{TSGSI / CGST / IGST Act 2017 and} Summary of the Order in Form GST^{DRC- 07, dated 18. 05. 2024 and the actionof} the^'l st Respondent in^passing the^{Attachment to DRC- 07' dated 18.05.2024'for} the tax period 2O1g- 20 under the TSGST^{/ CGST i IGST Act 2017,levyingtax of} Rs.2,21 ,32,537! and Penalty of Rs.^{4,49,48,4501-, totalingto Rs. 6,70,80,987/-} under the TSGST I CGST /^{IGST Act 2017,without providingthe books of} accounts and records collected / seized^{from the Petitioneron 16. 'l 2. 2023by the} 3rd Respondent, though the Authorisation^{issued by the JointCommissioner,} Begumpet Division, in INS- 01 on 24.^{12. 2023,without serving a copyof} Authorization to the Petitioner, without^{granting sufficient opportunity of being} heard, without even signature^{of the Officer concernedin Order, dated 1B' 05'} 2024 issued under Section 74 of the^{TSGST/CGST /IGSTAct 2017 and} Summary of the Order in Form^{GST DRC- 07, dated18.05.2024,withoutissuing} Form GST DRC- OIA as^{per Rule 142 of the TSGSTiCGST i IGST Rules2017'} without generating the DIN Number,^{as arbitrary, contraryto law, bias,frivolods,}

barred by limitation, without authority of law and in violation of Principles of Natural Justice and Rule of Law, and consequently set aside the Order, dal.ed 18.05.2024 issued under Section 74 of the TSGST / CGST / IGST. Act 2017 and Summary of the Order in Form GST DRC- 07, dated 18.05.2024 passeri by the 2nd Respondent, and the Attachment to DRC- 07, dated 18.05.2024 passed by the^'1sl Respondent, for the tax period 2019- 20, as null and void.

lA NO: 1 OF 2024

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed ir support of the petition, the High Court may be^pleased to suspend the operation of the Order, dated 18.05.2024 issued under Section 74 of the TSGST / CGSI- / IGST Act 2017 and Summary of the Order in Form GST DRC- 07, dated 18.05.2024 passed by the 2nd Respondent, and lhe Attachment to DRC- 07, dated 18 05.2024 passed by the 1st Respondent, for the tax period 2019- 20, pending disposal of the above Writ Petition, as otherwise, the Petitioner will be put to severe loss and hardship.

Counsel for the Petitioner: SRI SHAIK JEELANI BASHA Counsel forthe Respondent Nos.1 TO 5: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax

Counsel for the Respondent No.6: SRI B.MUKHERJEE FOR SRl cADl PRAVEEN KUMAR, Dy. SOLICITOR GENERAL OF INDIA

W.P.NO: 18148 OF 2024

Between:

M/s. A S l,4etcorp Private Limited, Regd.Office at Flat No.50 1, Vishal Srinivasa Krupa Apartments RTC Colony, Hasmathpet, Secunderabad 500 009, Rep. by its Authorised Representative and Chief Executive Officer Mr.Piyush Mehla

...PETITIONER

AND

The Deputy Commissioner (STXFAC) STU-2, Begumpet Division, Ameerpet, Hyderabad

The Assistant Commissioner (ST) STU-2, Begumpet Division, lrmeerpet, Hyderabad

The Assistant Commissioner (ST), Bowenpally-i Circle, Begumoet Division, Ameerpet Hyderabad.

The Joint Commissioner (ST), Begumpet Division, Ameerpet, Hyderabad.

t

..1'

The State of^{Telangana, Rep. by its Principal Secretary, Revenue (CT)} Department, Telangana^{Secretariat, Hyderabad'}

O. ifi5Uiiion ,jf^{tndia,"nep.Oy its Secietdry, Ministry of Finance, North Block,} New Delhi 110 001

...RESPONDENTS

.-.':

Petition under Article^{226 of lhe constitutionof lndia prayingthat in the} circumstances stated in^{the affidavit filed therewith,the High court maybe} pleased to issue writ of Mandamus^{or any other appropriatewrit or order or} direction declaring^{the action of the 2nd Respondent in passing the order,dated} 1g1o6t2024 issued^{undersection74 0f the TSGST / CGST / IGSTAct 2017 and} Summary of the^{order in FormGST DRC-07, dated 19/06/2024and the action of} the 1st Respondent^{in passingthe Attachmentto DRC-07,daled 1910612024,',tor} the tax^period 2022-23^{under the TSGST / CGST / IGST Act 2017,levyingtax of} Rs.10,79,20,8541 and^{Penalty of Rs.16,08,88,2961-,totalingto Rs'26,88'09'150f} undertheTSGST/CGST/lGsTAct2olT,withoutprovidingthebooksof accounts and records^{collected / seized from the Petitioner on 16.12.2023by the} 3rd Respondent; though^{the Authorisationissued by the Jointcommissioner,} Begumpet Division, in^{INS-01 on 24.12.2023, without serving acopy of} Authorization to the^{Petitioner, without granting sufficient opportunity of being ,} heard, without even^{signatureof the officerconcerned in order,daled1910612024} issued under section^{74 of the TSGST/CGST/ IGSTAct 2017 and summary of} the order in Form^{GST DRC-07,dated 19/06/2024,without issuing Form GST} DRC-o1A as^per Rule^{142 of the TSGST /CGST/ IGST Rules 2017, without} generating the DIN Number, aS^{arbitrary, contrary to law, bias' frivolous, without} authority of law and^{in violationof Principles of Natural Justiceand Rule of Law,} and consequently^{set aside the order, dated 19/06/2024 issued under section74} oftheTSGST/CGST/|GSTAct2olTandSummaryoftheorderinFormGST DRC-07,dated19/06/2024passedbythe2ndRespondent,andtheAttachmentto DRc-07, dated 19/06/2024^{passed by the 1St Respondent,for the tax period} 2022-23, as null and^void.

lA NO: 1 OF 2024

Petition under section^{151 CPC prayingthatin the circumstances statedin} theaffidavitfiledinSupportofthepetition'theHighcourtmaybepleasedJo suspendtheoperationoftheproceedingsdt.191612024passedbythelgt

Respondent and Order, dated 19/06/2024 issued under Section 74 of the TSGST / CGST / IGST Act 2017 and Summary of the Order in Form DRC-07,^dated 19l.OOl2O24 passed by the 2nd Respondent, for the tax^yeat 2022-23,^pending disposal of the abcve Writ Petition, as otherwise, the Petitioner^{will be put to} severe loss and hardship.

Counsel for the Petitioner: SRI SHAIK JEELANI BASHA Counsel for the Respondent Nos.1 TO 5: SRI SWAROOP OORILLA,^Special Govt Pleader for State Tax Counsel forthe Respondent No.6: SRI B.MUKHERJEE FOR SRI GADI PRAVEEN KUMAR, Dy. SOLICITOR GENERAI. OF INDIA

W.P.NO: 1005 OF 2025

Between:

M/s. A.S.Metcorp Private Limited, Regd.Office at Flat No.501, Vishal Srinivasa Krupa Apartments RTC Colony, Hasmathpet, Sec.underabad 500 009, Rep. by' its Authorised Representative and Chief Executive Officer Mr. PlYush lvehtzt

...PETraoNER

AND

'1 . The Deputy Commissioner (STXFAC) STU-2, Begumpet Division, Ameerpet, Hyderabad.

The Assistant Commissioner (ST) STU-2, Begumpet Division, Ameerpet, Hyderabad.

The Assistant Commissioner (ST), Bowenpally-'1 Circle Begumpet Division, Ameerpet Hyderabad.

The Joint Commissioner (ST), Begumpet Division, Ameerpet, tlyderabad. 5. The State of^'felangana, Rep. by its Principal Secretary, Revenue (CT) Department, felangana Secretariat, Hyderabad.

The Union of lndia, Rep. by its Secretary, Ministry of Finance, North Block, New Delhi 110 001.

Central Board of lndirect Taxes and Customs, Department of Revenue, Ministry of Finance, New Delhi.

.,.RESPONDENTS

Petition under Article 226 ot the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Vy'rit of Mandamus or any other appropriate Writ or Order or direction declaring (i) the action of the^{'lStRespondent} in passing the Proceedings, dated 08.10.2024, 1he Order, dated 08.10.2024 under Section 74 of lhe TSGST / CGST / IGST Acts, 2017 and Summary of the Order in Form GST DRC-07, dated 08.1O.2024,levying tax of Rs.4,27,27,6441-, Penalty of Rs.8,57,33,269/- and Fees Rs.1,47,200/- totaling to Rs.12,86,08,1131-, without providing the Clear ahd

Legible certified copies of Documents^{Relied Upon,Clear and Legiblecertified} Copies of books of accounts and^{recordscollected / seized from the Petitioner on} 16.12.2023, though the Authorisation^{alleged to have been issuedby the Joint} .:'Commissioner, Begumpet Division, in^{INS-01 on 15.12.2023, without servinga} copy of Authorization to the Petitioner,^{without grantingsufficient opportunity of} being heard and without supplying the^{certified copies of documents reliedupon,} certified copies of Books of Accounts^{and records seized by the 3rd Respondent,} without bearing Valid Verifiable DIN^{Number (ii)The actions of 4th Respondentin} issuing authorizations in Form GST^{INS 01 dated 24.12-2023and 25.12.2023,in} contravention of the^{provisions of the CGST/SGSTActs 2017,the same being} unlawful and not valid, since no^{valid and discreet reasonis provided, as} mandated under section 67 Rl/w^{rule 139 of the CGST/SGST Acts 2017. (iii)The} actions of the 1St respondent unlavufully^{passing the Proceedings and Order,} dated 08.10.2024 under Section 74^{of the TSGST/ CGST Acts, 2017 and} Summary of the Order in Form DRC-07,^{dated 08.1 0.2024for the tax period 2020-} 2021, when 1St to 3rd respondents^{had beeninvolved in inspectionsand} investigations of the facts and circumstances^{of matter,(iv)since,the appellate} authority, as.contemplated U/s^{107 of the CGST/SGSTActs 2017, even if the} Petitioner were to^prefer appeal, cannot^{exercise powers to remandthe matter to} the adjudicating authority, as no such^{powers are enacted underthe provisions of} the CGST/SGST Acts 2017.^{(v)Since,all the averments in the said Proceedings,} dated 08.10.2024^passed by the^{1st Respondentand Order, daledO8.10.2024} issued under Section 74 of the TSGST/^{CGST Acts,2017 and Summaryof the} Order in Form DRC-07, dated^{08.10.2024for the tax period 2020-2021are} arbitrary, contrary to law, bias,^{frivolous,without authorityof law, without} jurisdiction and in violation of Principles of Natural Justice and^{Rule of Law, and} consequently set aside the Proceedings,^{dated 08.10-2024passed by the1st} Respondent and order, dated^{08.10.2024 issued undersection74 of the TSGST/} CGST Acts, 2017 and Summary^{of the Orderin Form DRC-07, dated0B'10 2024} for the tax^period 2020-2021,^{as null and void.}

lA NO:^'t OF 2025

Petition underr Section 151 CPC^praying that in the circumstances statedⁱⁿ the affidavit filed in support of the^petition, the^{High Courtmay be pleasedto} suspend the operation of the Proceedings, dated 0811012024^{passed by the rt} Respondent and Order, dated 08.10.2024 issued under Section 74 oI lhe^TSGST/ CGST / IGST Acts;, 2017 and Summary of the Order in^{Form DRC-07,dated} 0811012024, for th,e tax petiod 2020-21 ,^pending disposal of the above^Writ Petition, as otherwise, the Petitioner will be^put to severe loss and trardship

lA NO: 3 OF 2025

Petition underr Section 15'1 CPC praying that in the circumstances statedⁱⁿ the affidavit filed in support of the^petition, the High Court may be^pleased to kindly Direct the 1st Respondent to revoke the Garnishee Notices issued in FORM GST DRC-13 under Seclion 79 (1)(c), of the CGST Act2017. Dated 10.02.2025 notice to a 3rd Person issued to 1. M/s. HST Steels Pvt. Ltd., Hyderabad 2. Mis. lndustrial Needs, Secunderabad and 3. M/s. Wisdom Ergotech lndia LLP Secunderabad and also to personal Bank accounts of present Directors and^past. Directors and authorized persons including the wife of authorized person Mrs. Alka Mehta, besides otlrers 3rd Parties as well,^pending disposal of the above Writ petition, as otherwis;e, the Petitioner will be put to severe loss and hardship.

lA NO: 2 OF 2025

Between:

lV1r. Attluru Sreenivasulu Reddy, Aged 54 years, Suspended Director of M/s. KLSR lnfratech Limited, 25613121319A & 98, F.No.4B KLSR Towers, Ayyapa Society lt/ad l-rapur, Hyderabad, Telangana- 50008 1 .

..IMPLEAD PETITIONER/ PROPOSED RESPONDENT No.8

AND

M/s. A.S.tMetcorp Private Limited, Regd.Office at Flat No.501, Vishal Srinivasa Krupa Apartments RTC Colony, Hasmathpet, Secunderabad 500 009, Rep. by its Authorised Representative and Chief Executive Officer Mr. Pivush Mehta

...RE.'.NDENT/wRrr^pETraoNER

The Deputy C;ommissioner (STXFAC) STU-2, Begumpet Division, Ameerpet, Hyderabad.

The Assistant Commissioner^{(ST) STU-2, BegumpetDivision,Ameerpet,} Hvderabad.

The Assistant Commissioner^{(ST), Bowenpally-1 Circle Begumpet Division,} Ameerpet Hyderabad.

5, The Joint C6mmissioner^(ST), Bequmpet^{Division' Ameerpet, Hyderabad'} 6. The State of Telangana, Rep.^{fy its Principal Secretary, Revenue (CT)} Department, Telangana Secretariat,^HydePpqd.

z. ini: Union of tnOia,-Rep. by its Secretdry,^{Ministry of Finance, North Block,} New Delhi 110 001^.

B. Central Board of lndirect^{Taxes and Customs, Departmentof Revenue'} MinistryofFinance'NewDelhi ...RES'.NDENTS/RES'.NDENTS

Petition under section 151 CPC^{prayingthat in the circumstances statedin} the affidavit filed in support^{of the petition, the High court may be pleased to} implead the Petitioner herein as^{RespondentNo.8in WritPetition No. 1005of} 2025.

Counsel for the Petitioner: SRI SHAIK JEELANI^BASHA Counsel for the Respondent Nos.1 TO 5: SRI^{SWAROOPOORILLA, Special} - Govt Pleader for State^Tax Counsel for the Respondent No.6: SRI B.MUKHERJEE^{FOR SRI GADI} PRAVEEN KUMAR, Dy. SOLICITOR^{GENERALoF INDIA} Counsel for the Respondent No.7: SRI DOMINIC^{FERNANDES, SC FOR CBIC} Counsel for the Proposed Respondent No.8:^{SIRKOPAL SHARRAF}

W.P.NO: 1130 OF 2025

Between:

tr/l/s. A.S.Metcorp Private Limited.,^{Regd-Office at Flat No 501, Vishal} Siniuasa Krupa Apartments^{RTC Colony,-Hasmathpet, Secunderabad- 500} 009, Rep. by'its Authorised^{Representativeand ChiefExecutiveOtficerlVlr.} PiYush Mehta

...PETlrtoNER

AND

l.TheDeputyCommissioner(STXFAC)STU-2,BegumpetDivision,Ameerpet' Hvderabad.

z. f6e AiiGiant Commissioner^{(ST) STU-2, Begumpet Division, Ameerpet'} Hyderabad.

a. i6e Rssistant commissioner^{(sT),Bowenpally-1 Circle, Begumpet Division,} Ameerpet Hyderabad.

The Joint Cdmmissioner^{(ST), Begumpet Division, Ameerpet, Hyderabad'} 5. The State of Telangana,^{Rep. by iis Principal Secretary,Revenue (C I )} Department, Telangana Secretariat,^Hyderabad.

o. itrSUiiion ot tnoia,"Rep.^{by its Secretdry, Ministry of Finance, North Block,} New Delhi -^'1 10 001^.

Z. CentraL^goard of lndirect^{Taxes and Customs Department of Revenue'} Ministry of Finance, New Delhi.

...RES'ONDENiS

fil

Petition under Article 226 of the Constitution of^{lndia prayingthat in the} circumstances stated in the affidavit filed^{therewith, the High Oourt may be} pleased to issue Writ of Mandamus or any other appropriate Writ or^Orderor direction declaring (i) the action of the 1st Respondent^{in passingthe Proceedings,} dated 08.10.2024, tl-re Order, dated 08.10.2024^{undet Section74 of the TSGST/} CGST / IGST Acts,^',?.O17 and Summary of the Order^{in Form GST DRC-07, dated} 08.10.2024, for the tax^period 2021-22 under the^TSGST /^{CGST /IGST} Acts,2017, levying ta.x of^Rs.6,45,'1 7,1391,^{Penaltyof Rs.it} ,30^{76,665/-, and Fees} of Rs.54,8001 totalirrg to Rs.17,76,48,604/- under^{the SGST/ COST / IGST Acts,} 2017, without^providing the Clear and Legible Certified^{copiesof the Documents} Relied Upon, Clear ernd Legible Certified Copies of books of^{accounts and records} collected / seized from the Petitioner on 16.12.2023, though^{the Authorisation} alleged to have bee,n issued by the Joint Commissioner, Begumpet^{Division, in} INS-01 on 15.12.20:23, without serving a copy of Authorization to the^Petitioner, without granting sufficient opportunity of being heard and^{withoutsupplyingthe} certified copies of documents relied upon, certified copies of Book.s of^Accounts and records seized by the 3rd Respondent, without bearing Valid Verifiable DIN Number. (ii) the actions of 4th Respondent in issuing authorizations in Form GST INS 01 dated 24.12.'2023 and 25.12.2023, in contravention of the^prcvisions of the CGST/SGST Act 2017, the same being unlavuful and not valid, since no valid and discreet reason is^provided, as mandated under Section 67 Ryw ntle^{139 of the} CGST/SGST Acl 2017 (iii) The actions of the 1st respondent unlawfully^passing the Proceedings and Order, dated 08.10.2024 issued under Section 74 of the TSGST/ CGST Acts, 2017 and Summary of the Order in Form DRC-07, dated 08.10.2024 for the r:ax period 2021-22, when 1st to 3rd respondents had been involved in inspections and investigations of the facts and circ,umstances of matter, (iv) Since, the appellate authority, as contemplated U/s 107 of the CGST/SGST Acl 2t)17, even if the Petitioner were to^prefer appeal, cannot exercise powers to remand the matter to the adjudicating authority, as no such powers are enacted under the provisions of the CGST/SGST Act 2017. (v) as all the averments in the said Proceedings, dated 08.10.2024 passed by the 1st Respondent and Orcler, dated 08.'10.2024 issued under Section 74 rrf the TSGST/ CGST Acts, 2017 and Summary of the Order in Form DRC-07, dated 08.10.2024 for the tax petiod 2t)21-22 are arbitrary, contrary to law, bias, frivolous, withoqt

authority of law, without^{jurisdiction and in violation of Principlesof NaturalJustice} and Rule of Law, and^{consequently set aside the Proceedings, dated.08.1o.2024} paglied by the 1st Respondent and order, dated^{08.10.2024issued under section} 74 of the TSGST/ CGST Acts,^{2017 andsummary of the order in Form DRC-07,} dated 08.10.2024 for the^{tax period2021-22, as null and void'}

lA NO: 1 OF 2025

Petition under section^{151 CPC prayingthat in the circumstances statedin} the affidavit filed in support^{of the petition,the High court maybe pleasedto} suspend the operation^{of the Proceedings,dated08.10.2024 passedby the 1st} Respondent and order, dated^{08.10.2024 issued under section 74 of the TSGST/} CGST / lGST Acts,^{2017and Summaryof the Order in Form DRC-07' dated} ol.1o.2o24,forthetaxperiod2021-22,pendingdisposaloftheaboveWrit Petition, as otherwise, the^{Petitionerwill be put to severe loss and hardship.}

Counsel for the Petitioner:^{SRISHAIKJEELANI BASHA} Counsel for the Respondent^{Nos.1 TO 5: SRtSWAROOP OORILLA, Special} Govt Pleader for^{Sthte Tax} Counsel for the Respondent^{No.6:SRIB.MUKHERJEE FOR SRIGADI} PRAVEEN KUMAR, Dv.^{SOLICITOR GENER'AL OF INDIA} Counsel for the Respondent^{No.7:SRI DOMINIC FERNANDES' SC FOR CBIC} The Court made the^{following:COMMON ORDER}

i l I li I

THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA

WRIT PETITION Nos.17938 1794L & 18148 of 2O24 and 1OO5 & l13O of2o25

COMMON ORDER (Per the Hon'ble the Acting Chief Justice Sujry paul):

Sri Shaik Jeelani Basha, learned couns;el for the petitioner; Siri Swaroop Oorilla, learned Speciai (.iovernment Pleader for Sitate Tax, for the respondent(s)-State Ta.x in all the writ petitionsr; Sri B. Mukherjee, learned counsel reprr,:senting Sri Gadi Prar.ee, Kumar, iearned Deputy Solicitor General of India, for the respondent(s)-Union of India in arl the u.rit petitions and Sri Dominic Fernandes, learned Senior Standing (,lounsel for CBIC, for the respondent(s)-CBlC in W.p.Nos.1O05 & 1130 of 2025.

Regald being had to the similitude of the questions involved, at the joint request of learned counsel for 1.he parties, the matters u.ere analogously heard.

.f. Durir g the course of hearing, learnerj counsel for the parties reached to a consensus. Learned Special Government Pieader for State Tax urged that since the principal ground taken

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by the petitioner is that the adverse material, on the strength of which show cause notices were issued, was not supplied to the petitioner, the show cause notices and consequential Order-inOriginals (OIOs) may be set aside by reserving liberty to the Dep'aitment to issue show cause notices -afresh and furnish adverse material on the strength of the same it is founded upon and the Department may be directed to proceed from that stage in accordance with law but limitation may not come in the way of the Department

Learned counsel for the petitioner has no objection to the aforesaid submission

Accordingly, in view of consensus arrived at, all the show cause notices and the OIOs in this batch of matters are set aside by reserving liberty to the Department to issue fresh show cause notices and provide supporting material to the^petitioner. The Department may proceed and decide the mattersⁱⁿ accordance with law and for undertaking this exercise,^Iimitation will not come in their way.

6 With aforesaid, these Writ Petitions are disposed^of

without expressing any opinion on merits of the case.^{No costs'} --dfi',

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Interlocutory applications, if any pending, shall also

stand closed

//TRUE^COPY//

SD/-MOHD.ISMAIL ASSISTANT^REGISTRAR l'!

\JsEc^{TION OFFICER}

To 1. The Deputy (lommissioner' (STXFAC) STU-2' Begumpet Division' Ameerpet'

, iil:i333fr.t^{commissioner, (sr) srU-2,BesumpetDivision,Ameerpet,}

. TXS"I333i;nt^{commissioner (ST)'Bowenpallv-1 circle' Besurnpet Division'}

+il:"fl?"T5:l*"J*fi;",^{(Sr), Begumpet Division' Ameerpet' Hvderabad''} F The^{principal Secretary, h"""lj"-rlibf l Department, Telangana Secretariat'}

, i#"{::41;irYf#"-:lllg,'J1,,n'"o^{of Finance' North Brock' NewDerhi}

, !"l33lr"rrd^{of lndirect Taxes and customs' Department of Revenue'} v.iitrv of Finance,^{New Delhi'}

s. sffi 3L^{E :lni:nnuirtA5[",ffil$t3':?Ej?t3,'":3J'ror state rax} ,,o.8rl"'33 to sRt GAD' PRAVEEN KUTMAR'^{Dv SollclroRGENERALoF}

ll*::b INDIA toPLlCl^{i:::lH l3llt g'l^'ssi?=o?;"'"?Jr8E,"Src roP rcl} 13.Two CD^CoPies

PSK.

LS (

HIGH COURT

DATED:0510312025

COMMON ORDER

WP.Nos.17938,17941 & 18148 ot 2024 AND 1005 & 1130 of 2025

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DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS (r

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