Disposed

M/s.Shah Enterprises v. The Union of India

Telangana HC22 Apr 2025WP/28954/2024

Case brief

AI extract

What is this about?

Two GST assessees challenged unsigned show cause notices and Section 73 assessment orders for FY 2018-19 and 2019-20, also attacking limitation-extension notifications. Following a prior batch order on unsigned notices, the court set aside the impugned notices and orders, allowing fresh proceedings without limitation as an obstacle.

What did the court decide?

Impugned notices and orders set aside; liberty to issue fresh show cause notice(s)/order(s); limitation not to be a hurdle; interim applications closed; no costs.

M/s.Shah Enterprises Vs The Union of India — GST and Indirect Tax | Telangana HC (2025)

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[³⁴⁴⁶ ]

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

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TUESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSAND AND TWENTY FIVE

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PRESENT

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

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WRIT PETITION NOs: 21826 and 28954 ot 2O24

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WRIT PETITION NO:21 8260F 2024

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Between:

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It//s.CNS Labs Private Limited, Flat No.505, Vaishnavi Exotica, Street No.3, Kakatiya Nagar, Habsiguda, Hyderabad-500007, represented by its Director Mrs.Supriya Patak Gudelli.

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...PETITIONER

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AND

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

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2 The Joint Commissioner (ST), Malkajgiri Division, Hyderabad.

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3 State of Telangana, Department of Revenue (C.T.), Rep. by its Principal Secretary Secretariat, Hyderabad, Telangana.

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Central Board of Direct Taxes and Customs, Represented by Chairman, Minigi) of Finance, Department of Revenue, North Block. Centrai Secretariat, New Delhi-1 1000'1 .

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5 Unign of lndia, Rep. by its Principal Secretary, Govemment of lndia, Ministry of Finance, 3rd Floor, Jeevan Deep Building. Sansad Marg, New Delhi't 10001 .

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...RESPONDENTS

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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 an appropriate Writ, Order or Direction, more particularly in the nature of MANDAMUS

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(i). Declaring that the impugned Notification No.56/2023, Central Tax, dated 28t1212O23, issued by the Fourth and Fifth Respondents under S.168-4 of the

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CGST Act, 2017, exte,rrding the Period^{of Limitation prescribedu/S 73(10) of the} CGST Act, 2Ct17 , for the Financial^{Year 201 8-19} ,^{till 30l04l2j2rl,is ultravires} Section^'1 68-A of the C GST Acl, 2017 , manifestly^{arbitrary, violativ': of Article 14} of the Constitution of lrrdia, illegal and consequently^{quash the same,}

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(ii). Declaring the impu gned Order under Section 73 of GST Acl^{2(117 passedby} the 1St Respondent vide GSTIN, 36AAFCCO253K1ZS/2018-19,^dated 29t0412O24, fc,r the Firrancial Year 2018-19, as^{barred by limitation, vrolativeof} the principles rlf naturaljustice, contrary to law,

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(iii). Declaring the action of the First Respondent in^passing the irnpugned Order vide No. GSTIN. 36A,4FCCO253K1ZS 2018-19, dated 2910412024^{by disallowing} the entire input tax credit for the^year 2018-2019 under the^{CGST ,,\ct/SGSTAct,} as illegal, arbitrary, righ handed, without authority of^law and lurisdiction,ⁱⁿ violation of the princilrles of natural contrary to the^provisions cf the Act and consequently^quash tre same.

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lA NO: 1 OF 2024

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Petition under S ection 151 CPC^praying that in the circumr,;tances stated in the affidavit filed in support of the^petition, the High Court may be^pleased to stay of all further^proceedings including any recovery^proceedings for collection of tax, penalty and interest through coercive methods in^pursuance of the impugned order of the 1st respondent daled 2910412O24 vide No. GSTIN. 36AAFCCO253K1ZSI2018-19 for the^year 2O18-19 under the CGIIT/SGST Acts pending disposal of the Writ Petition.

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Counsel for the Petitioner: SRI B.KRISHNA REDDY

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Counsel for the Respondent No.1 to 3: SRI T.CHAITANYA KIRAN, AGP, REP. FOR SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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Counsel forthe Respondent No.4: SRI DOMINIC FERNANDES, SC FOR CBIC

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Counsel forthe Respondent No.5: SRI GADI PRAVEEN KUMAR,

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DEPUTY SOLICITOR GENERIAT- OF INDIA

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WRIT PETITION NO: 28954OF 2024

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Between:

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M/s.Shah Enterprises, 1-4-55417, Bholakpur, Hyderabad, Telangana, rep. by its Proprietor Sri Mohammed Abrar Pasha.

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...PETITIONER

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AND

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

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

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The Assistant Commissioner (ST), Gandhinagar Circle, Secunderabad Division, Mayur Kushal Complex, beside Chermas, Abids, Hyderabad, Telangana.

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The Goods and Service Tax Council, Rep by its Secretary, GST Council, Secretariat, 5th Floor, Tower-ll, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-1 10 001 .

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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-1 10 001.

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The Joint Commissioner (ST), Secunderabad Division, Mayur Kushal Corilplex, beside Chermas, Abids, Hyderabad

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...RESPONDENTS

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Petition under Article 226 of the Constitution of India^praying that in the circumstances stated in the affidavit filed therewith, the High Court may^be pleased to issue an appropriate Writ, Order or Direction, more particularly in the nature of MANDAMUS-

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Declaring that the impugned Notification Nos.09/2023- Central Tax, dated 31-03-2023 and 5612023, Central Tax, dated 28-12-2023,issued by the^'1st and 5th Respondents, and the impugned G.O. Ms. Nos.11B, Revenue (CT-ll) Department, dated 25-08-2023 and 170, Revenue (CT-ll) Department, dated 30-12-2023, issued by the 2nd Respondent, under S. 168-4 of the CGST Act,2017, extending the Period of Limitation prescribed u/S. 73(10) of the CGST Act, 2017, for the Financial Year 2O19- 20 are ultravires Section 168-A of the CGST Act, 201 7, manifestly arbitrary, violative of Article 14 of the Constitution^of lndia, illegal and consequently^quash the same

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.,'i{:" i':,-

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Declaring .hat the impugned Assessment Order in Forrn DRC-07 vide GS I- No.3(il3XSPP3000Ml24 dated 31.08.2024, along w th its summary pro,:eedingls; passed by the 3rd Respondent, u/S. 73 of the CGST and TSGST Act;, 2017, for the Tax Period 2019-20 as with,rut jurisdiction, violative ol the principles of natural justice, contrary to law, barred by limitation, and even on merits arbitrary, capricior.rs, unjustified, unsustainab le and illegal and consequently set aside ther same.

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lA NO: 1 OF 2024

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Petition under Section 15'l CPC praying that in the circumstances stated in the affidavlt filed ir support of the petition, the High Court may be pleased to grant stay of all further proceedings pursuant to the impugned Assessment Order in Form DRC-07 vide GST No.36BXSPP3000lVlZ4 dated 3'1 .O8.2'024 atong with its summary orocee(i ngs passed by the 3rd Respondent, u/S. 7:l of the CGST and TSGST Acts, 2C'17, for the Tax Period 2019-20 pending rlisposal of the above Writ Petition.

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Counsel for the Petitioner: SRI B.KRISHNA REDDY

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Counsel forthe Respondent No.1 : SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIAL OF INDIA

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Counsel for the Respondent No.2, 3 & 6: SRI T.CHATTANYA KIRAN, AGP, REp. FOR SRI SWAROOP OORILLA, SPL GP FOR STATE TAX

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Counsel for the Respondent No.4 & 5: SRI DOMINIC FERNANDES, sc FoR cBtc

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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.21826 ard.28954^{of 2o24}

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COMMON ORDER:^{(Per the Hon'blethe ActingChief JusticeSujog Paul)}

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Sri B.Krishna Reddy, learned^{counsel for the petitioners and} Sri T. Chaitanya^{Kiran, Iearned AssistantGovernmentPleader} representing Sri Swaroop^{Oorilla,learned Special Government} Pleader appearing for State^Tax.

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Regard being had to the similitude^{of the questions invoived,} on the^joint request of^{learned counselfor the parties, the matters} are analogously heard^{and decidedby this common order.}

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Learned counsel for the^{petitionersand learned Special} Government Pleader for^{State Tax submittedthat since the} impugned notice(s) and^{order(s) are unsigned,the sarnemay be set} aside in view of the common^{order passed in W.P.No.21101 of} 2024 & batch, dated 28.02.2025.

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Accordingly, the impugned^{notice(s)and order(s) in these} Writ Petitions are set aside.^{Liberty is reservedto the respondents} to issue fresh show^{cause notice(s)/order(s) in accordance u'ith law}

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)

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I ! 'I rl Ll l 1

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and, for urderr.irking this exercise afresh, the limitatior-r u,ill not be a hurdie for tht. respondents.

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The Writ l)etitions are disposed of u,ithout cxp ressing aly oplnlon on the .trerits of the case. No costs.

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Intr:rlocur orv applications, if any pending, shzrll also stand

closed.

To,

//TRUE COPY//

SD/.7.TIRUMALA DEVI UTY REGISTRAR ,\ Tt

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., SECTION OFFICER

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1 The Assistant Commissioner (ST), Nacharam-'l ircle, Malkajgiri Division, Hyderabad.

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The Joint Cornrrissioner (ST), Malkajgiri Division, Hyderabari.

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The Princip!l Secretary, Department of Revenue (C.1 .), Secretariat, Hyderabad, Te,l,tngana.

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The Assistan Commissioner (ST), Gandhinagar Circle, Secunderabad Division, Mayur Kushal Complex, beside Chdrmas, Abirls, Hyderabad, Telangana.

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5, The Secretary,^(joods and Service Tax Council, GST Councit, Secretariat, Sth Floor, Tower-ll, Jeevan Bharti Building, Janpath Road, Connat_ght place, New Delhi-'1 10 001.

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The Joint Cornmissioner (ST), Secunderabad Division lvlayur Kushal Complex, besidr: Chermas, Abids, Hyderabad

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The Chairman, Central Board of Direct Taxes and Custorns. Ministrv of finance,^{Dep;rrtmentof Revenue,No(h Block. Central S.)cretariat,} New Delhi-1^'10001 .

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