Disposed

M/s.Heavy Metal Recycling Company, v. Assistant Commissioner of State Tax

Telangana HC19 Mar 2025WP/21268/2024

Case brief

AI extract

What is this about?

The High Court set aside unsigned show cause notices and orders passed under Section 73 of the GST Act, 2017, following a common order in a batch case. The court revoked consequential bank attachments, reserved liberty for respondents to issue fresh notices in accordance with law without limitation being a hurdle, and disposed of the writ petitions without expressing an opinion on merits.

What did the court decide?

Set aside impugned unsigned notices/orders; bank attachments revoked; liberty to issue fresh notices.

M/s.Heavy Metal Recycling Company, Vs Assistant… — GST and Indirect Tax | Telangana HC (2025)

¶1

[³⁴⁴⁶¹

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

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

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PRESENT

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

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WRIT PETITION NOs: 21268OF 2^{024 and 146460117003 &} 7049 of 2025

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WR lT PETITION NO: 21268 OF 2024

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Between:

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1l..'

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M/s. Heavy Metal Recycling Company, Represented^{by the ProprietorSri} Muzeeb Syed, H.N0.2-6-478 JAiPURI COLONY,^{Ground Floor, Jaipuri} Colony, Ndgole Village, Hyderabad, Rangareddy,^{Telangana, 500068'}

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...PETITIONER

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AND

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Assistant Commissioner of State Tax,^{Vanasthalipuram-ll Circle, Saroonagar} Division, Address. 5-4-435, 5th Floor, Old^{Kakatiya Hotel,Nampally Station} Road, Nampally, Hyderabad^{-500 001}

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Government of Telangana, Represented^{by the Secretaryto Govemment of} Telangana, Revenue Department,^{Government Secretariat Buildings} Saifabad, Hyderabad. Telangana- PlN.^-500 004.

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...RESPONDENTS

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Petition under Article 226 of lhe Constitution^{of lndia prayingthat in the} circumstances stated in the affidavit^{filed therewith, the High Court maybe} pleased to issue an appropriate writ, order or direction, more^{in the natureof Writ} of Mandamus, setting aside the^{impugned order passed by the RespondentNo. 1} on 25-04-2024 under Section^{73 of the GST Acts, 2017 for the tax period June,} 2023 and also his decision daled 30-12-2023^{to block the input tax credit in the} electronic credit ledger being maintained^{in the GST portal.}

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lA NO: 1 OF 2024

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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 the collection of the disputed tax of Rs.66,55,265 levied by th,-. Respondent No. 1 vide his orders passed under Section 73 of the GST Acts, 2r)17 dated 2504-2024 for the variour; reasons mentioned in detail in the Part-B o'this affidavit. and to pass such other order or orders in the interest of Ju-.,tice, lest the Petitioner will be put to irreparable economic loss. The balance of convenience is clearly in favour of the petitioner and against the Respondents.

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Counsel for the Petitioner: SRI GOONDLA VENKATESWARLU

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Counsel for the Respondents: SRI SWAROOP OORILLA,

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SPL GP FOR STATE TAX

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WRIT PETITION NO: 1464 OF 2025

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Between:

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IVI/s. Vin Plast, B-17, 5th Floor, Centaur lkon, T.l.E, Balanagar, Hyderabad, Telangana- 500C37 Rep by its Partner, Maddipati Ratan Kumar

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.,.PETITIONER

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AND

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1- Assistant Commissioner (ST), Fathenagar Circle, Hyderabad^riural Division, Hyderabad

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Union of lndia, Rep. by the Secretary, Ministry of Finance, No 136- A, North Block, New Delhi.

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State of Telangana, Rep. by its Principal Secretary to Governnrent, Revenue (CT-ll) Department, Secretariat, Hyderabad.

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..RESPONDENTS

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Petition under Article 226 of Ihe Constitution of lndia prayi'rg that in the circumstances stated in the affidavit filed therewith, the High C;our1 .r, O" pleased to issue an appropriate Writ, Order or Direction more particularly in the nature of MANDAMUS declaring the action of the^'lst Respondent in passing the impugned order dated 28.8.2024 and issuing notice for recovery of demand daled 10.12.2024 as rmproper, illegal and unsigned and consequen y set aside the same.

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lA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in ![e affidavit filed in support of the petition, the High Court may be pleased to grant stay of collection of the total disputed tax of Rs.2,35,02,4241- (IGST of Rs.1,90,68,688/-, CGST of Rs.22,'16,8681 and SGST of Rs.22,16,868/-) and total penalty of Rs.23,50,242l- (CGST of Rs.2,21,687/-, SGST of Rs.2,21,687tand IGST of Rs.19,06,8681

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Counsel for the Petitioner: SRI MUKTINUTALAPATI RAMACHANDRA MURTHY

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Gounsel for the Respondent No.1 & 3: SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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Counsel forthe Respondent No.2: SRI B.MUKHERJEE, REP. FOR SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIAL OF INDIA

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WRIT PETITION NO: 6011 OF 2025

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Between:

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M/s GPR Electrical and Automation Pvt. Ltd, O/o. D.No.7-12-D1366, Satyanaranapuram, Paravathpuram(V), Medipally(M), R.R.District, Telangana, Rep.by its Director, Mrs.Gummi Vijaya Lakshmi, Wo. G.Praveen Kumar, Aged about 39 years, Occ Director, Rl/o. Plot No.D/366, Satyanarayanapuram, Paravathpuram(V), Medipally(M), R.R.District, Telangana.

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...PETITIONER

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AND

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The Assistant Commissioner (ST), Malkajgiri-1 Circle, Malkajgiri Division, Hyderabad, Telangana

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

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The Central Board of lndirect Taxes and Customs, Rep by its Chairman, Ministry of Finance, Department of Revenue, North Block, Central Secretariat, New Delhi - 100 001 .

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The Bank Manager, Union Bank of lndia Ltd., Chandrapuri Colony, L.B. Nagar X Roads, Telangana.

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...RESPONDENTS

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Petition under Article 226 o'f 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 or order or direction more particularly one in the nature of

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'.,

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Writ of Mandamus Jeclaring the impugned Show Cause Notices along with summary of Shorv Cause Notices in Form DRC-O1 vide Ref.No. W360522O147888 dt. 29.05.2O22 Fotm DRC-o1 vide Ref No.2D3009230367436 dt. 29.09.2023, and impugned order dated 31 .12.2023 along with ;:roceedings in Form GST DRC-07 vide Ref. No. 2D361223O746758 datell 31 .12.2023, impugned order dated 02.01 .2024 along with proceedings in Form GST DRC-07 vide Ref. No. 2D360124000499L dated 02.01 .2024, and impugnt,rd order dated 15.11.2023 along with summary of the order in Form GST DRC-07 vide Ref. No. 2D3611230170119 dated 15.11.2023, passed by the 1st Responcent for the tax period 2017-18 withcut having any signature as illegal, arbitrary, apart from violative of Article 1+ 19(1Xg) and 265 of the Constitution of lndia Consequently, set aside the same.

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lA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the circum!;tances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of all further proceedings pursuant to the impugnerl order dated 31 .12.2023 along with proceedings in Form GST DRC-07 r,ide Ref. No. 2D361223O746758 dated 31 .12.2023, impugned order dated 02.i.)1 .2024 along with proceedings in Form GST DRC-07 vide Ref. No.2D360124C)00499L dated 02.01 .2024, and impugned order dated 15.11.2023 along with summary of the order in Form GST DRC-07 vide Ref. No. ZD36 l1230170119 dated 15.11.2023 passed by the^'1 st Respondent for the tax period 2017-18, pendirg disposal of the Writ Petition.

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lA NO: 2 OF 2025

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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 bank attachment notice issued in Form GST DRC-l 3 dated 16.01 .2025 under section 79(1XC) of GST Act, by the 1St responclent to the 4th respondent and also direct the 4th respondent to de-freeze the bank account of the petitioner, pending disposal of the writ petition.

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Counsel for the Petitioner: SRI KOHIR BHASKAR REDDY

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.:'.'

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Counsel forthe Respondent Nos.1 & 2: SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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Counsel for the Respondents No.3: SRI DOMINIG FERNANDES, . ' Sr. SC FOR CBIC

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WRIT PETITION NO: 7003 OF 2025

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Between:

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M/s lndia Ahead News Private Limited, Plot No 75, 8-2-29318214"/75, Road No. 9, Jubilee, Hyderabad, Telangana - 500033'Rep. by its Director^M. Goutam

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..,PETITIONER

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AND

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1 Union of lndia, Ministry of Finance, Department of Revenue, 15, Safdarjung Road, New Delhi - 110001 Represented by its Secretary, New Delhi

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2 State of Telangana, Department of Revenue^(Commercial Tax), Secretariat, Hyderabad. Represented by its Secretary

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J Assistant Commissioner (ST), Jubilee Hills 4, Punjagutta Division, Hyderabad

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4 Deputy Commissioner (ST)-5, Enforcement wing-2, Hyderabad.

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5 Assistant Commissioner (ST), Enforcement, Hyderabad

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...RESPONDENTS

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Petition under Article 226 of the Constitution of lndia^{prayingthat in the} circumstances stated in the affidavit filed therewith, the^{High Court maybe} pleased to issue a Writ, Order or Direction, more particularly in the nature of a Writ of Certiorari,^quashing the Order-ln-Original^passed by^{Respondent No.3} vide Ref No.ZD360B241 507338 dated 3'1108/2024 as being^{voidillegal arbitrary,} without^jurisdiction and consequently set aside the same.

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lA NO: 2 OF 2025

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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^proceedings, including^{recovery proceedings pursuantto the} Order-ln-Original^passed by Respondent No.3 vide Ref^{No.2D3608241507338} daled 31 .08.2024.

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Counsel for the Petitioner: SRI KAILASH NATH.P.S.S

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*ia

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Counsel for the Respondent No.'l: SRI B.MUKHERJEE, REp. FOR SRI GADI PRAVEEN KUMAR, DEPUry SOLICITOR GENERIAL OF INDIA

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Counsel for the Respondent No.2 to 4: SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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WRIT PETITION NO: 704I OF 2025

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Between:

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M/s lndia Ahead News Privalg Limited, Plot No 75, B-2-293i82lfu75, Road No.9, Jubilee Hyderabad, Telangana - 500033 Rep. by ts Direitor M. Goutam

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...PETITIONER

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AND

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1 The. Union of India, Mlnistry of Finance, Department of Revenue, 15, Safdarjung Roacl, New Delhi- -1 10001 RepresenteO Oy its Secretary,'New Delhi

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2 Ilg Ptqtg ,of ,^{Ielangala, Departmento-f Revenue lCommerciatTax),} Secretariat, Hyderabad. Represented by its Secretary

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3 Assistant Commissioner (Enft) Enforcement, HOD, Hyderabad

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4 Deputy Commissioner (ST)-5, Enforcement Wing-2, Hyderabad

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...RESPONDENTS

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Petition under Article 226 oI the constitution of lndia prayi,rg that in the circumstances stated in the affidavit filed therewith, the High (.;ou6 ,r, O" pleased to issue a writ, order or Direction, more particularly in the nature of a writ of certiorari, calling for records and quashing the order-in-original bearing ref no. 2D3608241438814 dated 30.08.2024 passed by Respondent No.4 as being violative of principles of natural justice, unlawful and without jr.rrisdiction.

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lA NO: 1 OF 2025

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Petition under section 1sl cpc praying that in the circumslances stated in the affidavit filed in support of the petition, the High court may tre pleased to stay all further proceedings, including recovery proceedings pursuant to the order-in-original bearing ref no. 2D3608241438814 dated 30.08.2024 passed by Respondent No.4.

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Counsel for the Petitioner: SRI KAILASH NATH.p.S.S

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Counsel for the Respondent No.l: SRI B.MUKHERJEE, REP. FOR SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIAL OF INDlA

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Cou.nsel for the Respondent No.2 to 4: SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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The Court made the following: COMMON ORDER

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

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WRIT PETITION Nos.2 1268 of 2O24 and 1464, 6011 7003 & 7049 of 2o25

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COMMON OR=DER (Per the Hon'bte the Acting Chief Justice Sujoy paul):

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Sri⁽ i. Venkateshwarlu, learned counst 1 for the

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petitioner(s) ir W.P.No.2 1268 of 2024; Srt M. Ramachandra Murthy. learned counsel for the petitioner(s) in W.p.No. 1464 of 2025; Sri Kohir Bhaskar Reddy, iearned couns,el for the petitioner(s) irr W.P.No.6077 of 2025 and Sri Kailash Nath p.S.S, learned counsi:l for the petitioner(s) in W.p.Nos.7OOli and 7049 of 2025

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Sri lj rvaroop Oorilla, learned Special ( iovernment Pleader lor ljtate Tax, for the respondent(s) r.jtate Tax; Srr Muralidhar Reddy Katram, learned Government pleader for the Revenue, lor the respondent(s)-Revenue Departn rent; Sri p. Shashidhar R.rldy, learned Central Government Coursel, for the respondent(s)- C)entral Government; Sri B. Mukherjr:e, learned counsel represents Sri Gadi praveen Kumar, lcamed Deputy Solicitor Gener-a1 of India, for the respondent(s)_ Unic;n of India;

1 I I I I l

Sri Dominic Fernandes, learned Senior Standing^{Counsel for} CBIC, for the respondent(s)-CBlC.

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Regard being had to the similitude of the^questions involved, on the^joint request^{of learned counselfor the parties,} the matters were alalogously heard^{and decided by this common} order.

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Learned counsel for the petitioners and^{learnedSpecial} Government Pleader for State Tax submitted^{that sincethe} impugned notice(s) and order(s)^{are unsigned, the samemay be} set aside in view of the common^{orderpassedin W.P.No.21 101 of} 2024 & batch, dated28.02.2025.

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Accordingly, the impugned notice(s)^{and order(s)in these} Writ Petitions are set aside. The^{consequentialbank} attachment(s), if any, shall^{also stand revoked.Libertyis} reserved to the respondents to^{issue fresh show cause} notice(s)/ order(s) in accordance^{with1aw and, for undertaking} this exercise afresh, the limitation^{will not be a hurdle for the} respondents.

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The Writ Petitions are disposed^{of withoutexpressing} any opinion on the merits of the case.^No costs. *4

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InterLrcutory applications, if any pending. shall also

stand closed

,.:'

SD/.S. MALLIKARJUNA^RAO ASSISTANT^REGISTRAR //TRUE COPY//

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dec TION OFFICER ,1

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to', . ,n" Principal Secretary, Revenue (CT) Department' Telangana Secretariat' 2. The HYderabad, Secretary State^{to of Telanoana''63u8il'iunt} -of^{- Telangana' Reventte Department'} covernment^{Secretarili'e"uiiii'igiSiifrOud,Hyderabad. Telangana-PlN.-}

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g. iii 500 004^-S"".r"tary, Ministry of finance, D-e!-artment^{of Revenue''15' Safdarjung} - noiO, Union ol lndia, New Delhi - 1 10001 4. The Secreta,v,^{oeiart'm"-ni"ijr iiJu*ue (commercial Tirx), Secretariat,}

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Hvderabad, State^{of Telangana'}

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1. i#t;ftt*.^,'vi"iri.v'6i'ri.Jnce,^{No..136-A, North Block, I'lew Delhi,Union} of lndia.

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1. The Assistant^{CommissionerofSlqle} ]9x'^{Vanasthalipuram-llCircle'} Saroonagar^{oivision,"'Iio"ieis., -q-+135, Sth, Floor, old KakatiyaHotel,} ili,iiliiv= strt'"n^{noao,Nampallv- Hvd erabad -500 001}

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T The Assistant comfrissii.5i i'dril^{Fathenagar Circle' Fyderabad Rural}

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u ?n""t'i1;[Yi"?'BXfli*i..ion"r^{(sr), JubireeHirs 4, puniagutta Division,} HYderabad

¶122

The Deputy^{Uommlssioner (ST)-5, Enforcement wing-2'Hydrrrabad'} io.rne Aiii.tint^{Commissioner (Sr;,EnforcementHvderabad} .1 1.The Assistant Comrn'isJio"nei-i6fl Vatt aigiri-1 Circle, IV,rlkajgiri^Division, Hvderabad, Telangana.

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Hvderabad, Telangana.

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12.i#"ch;;fii,i,-c'"iiiilr^{Board of tndirectTaxesand customs'Ministryof} Finance, o"purtnleni'#^{i&e-,irJ, r..lorft,-elock, central secrertariat,NewDelhi}

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l3.The - 100 Bank 001^{l/anager, Union Bank of lndia Ltd , Chandrapuri Crrlony' L B Nagar} X Roads, Telangana.

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1 4 ti;;c"Ci" 5er 6oor.rom^{vENKATESWARLU,Advo-cate [c)PUC]- .} E

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1 il; bE'i"-s Riv^u rl^{r.r uinLAFArt -nnuncHANDRAN[t.r RTHY, Ad vocate} TOPUCI

¶128

16 5;""ct to sRl PULIMAMIDI^{sHASHIDHARREDDY'} ldyocqte^[oPUC] 17 5;; c6 i" sHi^{xoHin eHnsKAnREDDY'Advoca^19.{o-fucJ} 18 #; cc io 5ili^{xeLlAsH NATH.P.s.s,Advocate[oPqq]} - - - ^. 19 5;; 6c i" Siii^{o-orr,rrr.rrdrenuAuoeS'sr. sc roR cBlc loPUCl-} 20 5;; cc ii snr cnor^{pnavLer.r'r<u-u-AR.Dy. SOLIC|TOR GEN. OF lNDIA,} ili""n c"r'tt r"i ine^{State of Telanganaat Hyderabad} -[oPUCl

¶129