M/s. Orsu Yadaiah Vs Goods and Services Tax Network… — GST and Indirect Tax | Telangana HC (2026)

M/s. Orsu Yadaiah Vs Goods and Services Tax Network… — GST and Indirect Tax | Telangana HC (2026)

What the court decided

AI extract

Outcome

Liberty to the petitioner to file the appeal before the Appellate Authority within two weeks with the statutory deposit and a delay condonation application, taking all available grounds of law and fact in the memo of appeal; appellate authority to consider the delay sympathetically and, if satisfied, decide the appeal on merits within twelve weeks of receipt of a copy of the order; no order as to costs; pending miscellaneous applications closed.

Issue for consideration

Whether the petitioner can be exempted from making the pre-deposit against the penalty amount for filing an appeal under the GST regime, given that the outstanding tax dues were already paid during the adjudication proceedings. +1 more

Court's answer

There is no exemption for any taxpayer from making the pre-deposit while filing an appeal under the GST regime.

Ratio / Principle

Whether the liability of penalty or tax was rightly imposed is a matter to be decided on the appeal's merits and cannot be a ground to seek exemption from making the pre-deposit.

Key takeaways

The petitioner was granted liberty to file the appeal within a period of two weeks with the statutory deposit and a delay condonation application, and may take all available grounds of law and fact in the memo of appeal.ratio¶58
The appellate authority is to consider the question of delay sympathetically in light of the petitioner's correspondence with the authorities and, if satisfied on the point of delay, proceed to decide the appeal on merits in accordance with law within a reasonable time, preferably twelve weeks from the date of receipt of a copy of the order.ratio¶58

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (CJ Aparesh Kumar Singh and G.M. Mohiuddin JJ), W.P. No. 3775 of 2026, disposed 10.02.2026 (petition under Article 226): the petitioner-proprietorship, having paid the outstanding tax dues during the pendency of adjudication, sought an effective remedy to appeal against the order dated 03.09.2025 passed by the Assistant Commissioner (State Taxes) under Section 74 of the CGST Act, 2017 and the TGST Act, 2017 for tax period 2022-23, which imposed penalty and interest of Rs.15,11,348/- relatable to August and September 2022; the time to appeal expired while the petitioner corresponded with GSTN for permission to appeal without pre-deposit. HELD: there is no exemption for any taxpayer from making the pre-deposit while filing an appeal under the GST regime; whether the liability of penalty or tax was rightly imposed is a matter for the appellate authority on merits and cannot be a ground to seek exemption from pre-deposit. Liberty granted to file the appeal within two weeks with the statutory deposit and a delay condonation application, raising all available grounds of law and fact; the appellate authority to consider the delay sympathetically and, if satisfied, decide the appeal on merits within twelve weeks of receipt of a copy of the order. Writ petition disposed of with no order as to costs.

[³⁴⁸⁸ I

IN THE HIGH COURT FOR THE STATE OF TEI-ANGANA AT HYDERABAD (Special Original Jurisdiction)

TUESDAY, THE TENTH DAY OF FEBRUARY TWO THOUSAND AND TWENW SIX

PRESENT

THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR^SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN

WRIT PETITION NO: 3775 OF 2026

Between:

M/s. Orsu Yadaiah, Aged about 49^years Rep. by;its Proprietor,^{Mr. Orsu} Yadaiah, 12-3712, Beeramguda,'Ameenapur, Hyderabad,^Sangareddy, Telangana-5O2 O32.

...PETITIONER

AND

1 Goods and Services Tax Network^(GSTN), Worldmark^{1, Aerocity, lndira} Gandhi lnternational Airport, New Delhi, lndia-110037.

Assistant Commissioner^(State Taxes), Mehdipatnam ll^{Circle, Charminar} Division, Hyderabad.

State of Telangana, Rep. by its Secretary^{to Government (Revenue) CT-ll,} Commercial Taxes State Tax Department, Secretariat,^Hyderabad.

Union of lndia, Rep. by its Secretary^(Finance), Ministry of^{Finance,North} Block, New Delhi-110 001

...RESPONDENTS

Petition under Article 226 of the Constitution of lndia^{praying that in the} circumstances stated in the affidavit filed therewith,^{tl.te High Court may be} pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction to'direct^(a) the f 3t Redpondenf to iirovirie^{the'Pcititioheran effective} remedy for filing the appeals to the Appellate^{Authority againstthe impugned} order dated 31912025^passed by the 2nd Respondent^{under Section 74 ot Central} Goods and Services Tax Act, 2017 and also under^{Telangana Goodsand} Services Tax Act, 2017 for the tax^period 2022-23 bi^{disputing the tax, penalty} and interest or (b) alternatively^grant the^liberty by^{permitting the Petitioner to} submit the manual Appeal before the Appellate^{Authority disputingthe case on}

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tax, penalty ernd lnterest for the tax period 2022-23 under the Central Goods and Services Tax Act, 2017 and also under Telangana Goods and Services Tax Act, 2017 against the order of the 2nd Respondent dated 3lgl2o2.

Counsel for the Petitioner: SRI K. P. AMARNATH REDDY

Counsel for the Respondent No.l: SRI DOMINIC FERNANDES (senior standing counsel for CBIC)

Counsel for l:he Respondent Nos.2 and 3: sRl K. sAl AKARSH, AGp FoR SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

, Counsel for the Respondent No.4: SRI ARVIND KUMAR KATA,

SC FOR CENTRAL GOVERMENT

The Court m,ade the following: ORDER

IN THE TIIGH COURT FOR^{THE STATEOF TELANGANA} AT IIYDERABAI)

THE HON'BLE TTIE CHIEF JUSTICE SRI APARESII^{KTJMAR SINGII} AI{D THE HON'BLE SRI JUSTICE G.M.MOIilUDDIN

WRIT PETITION No. 3775of 2O26

DATED : 10.02.2026

Between:

lWs. Orsu Yadaiah

Petitioner

ANI)

Goods and Services Tax Network^(GSTN), New Delhi, and three others

Respondents

ORDER:

Sri K.P. Amarnath Reddy, learned counsel^{appears for} petitioner.

Sri Dominic Fernandes, learned Senior Standing Counsel for Central Board of [ndirect^'faxes and Customs

appears for respondent No.1.

Sri K. Sai Akarsh, learned Assistant Government Pleader appears for Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, fo1 respondent $99-.p_ and

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Sri Arvind Kumar Kata, learned Senior Standing Counsel for Central Government appears for respondent No.4.

2 HCJ (AKrS, J) & cMM, J W.P.No.3775 of 2026

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The petitioner claims to have paid the outstanding dues after issuance of the show cause notice during the pendency of the rrdjudication proceedings, but the order dated 03.09.2025 has imposed the penarty and interest amounting to Rs.l5,11,348/- relatable to August and September,2022. The petitioner had been making correspondence with the GSTN to pernrit it to file an appeal without pre-deposit, as the outstanding tax dues had arready been paid and no case of penalty could be made out. However, in that process, time for filing the appeal expired. It is conrended by the learned counsel for the petitioner that the petitioner has good grounds to explain the delay. But, the petitioner may not be compelled to m;nke the pre-deposit of r0% against the penalty amount in the aforesaid circumstances.

Learned Senior Standing counsel appearing for GSTN subnrits that there is no power with GSTN to exempt the pre-deposit for filing the appeal.

Learned Assistant Government pleader appearing for the

state Tax also submits that the pre-deposit is a prerequisite for

HCJ {AKrS, Jl &GMM, J W.P.No.3775 of 2O26

3

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filing the appeal. Whether the deposit of tax during the adjudication proceedings could relieve the petitioner of the liability of penalty is a matter to be decided by the appellate authority only upon the appeal being filed with pre-deposit. The petitioner, therefore, cannot claim any exemption from making the pre-deposit. Learned Assistant Government Pleader also submits that the petitioner may be allowed liberty to approach the appellate authority with an explanation for the delay within a stipulated period and take all such grounds of law and facts in its appeal

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In the facts and circumstances noted above, since there is no exemption for any taxpayer from making pre-deposit while filing the appeal under the GST regime, whether the liability of penalty or tax was rightly imposed or not would be the subject matter of appeal on merits, the same cannot be a ground to seek exemption from making the pre:dpposit. However, since the petitioner had been in correspondence with the respondent authorities on this issue and has missed the cut off date for filing the appeal, we grant liberly to the

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HCJ (AKrS, J) &^{GMM, J} 4 W.P.No.3775 of^2O26

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petitioner to file an^{appeal withina period of two weeks with} statutoqr deposit^{and a delay condonationapplication.The} petitionr:r may^{take all such grounds of law and facts in the} memo of appeal^{as are available to it. Needtessto say, the} appellate authority^{wouldconsider the question of delay} sympathetically^{taking into account the aforesaid factsand} circumstances^{and if he is satisfied on the point of delay, he} would proceed to^{decide the appealon merits in accordance} with law within^{a reasonable time, preferably, withintwelve} weeks flrom the date^{of receipt of a copy of this order.}

llccordingly, the^{instant writ Petition is disposed of.}

There sha[[ be^{no order as to costs.}

Miscellaneous^{applications, if any pending, sha[[ stand}

closed.

,,:TRUE^COPY"

SDI-M .OSMAN^{ALI BAIG} ASStsrA*]F GISTRAR I

SECTION^OFFICER

To,

Goods^{and services Tax Network (GsrN), worldmark 1, Aerocity,lndira} Gandhi tntematioi-J^{niri&, New Delhi' tnoia-t 10037'}

Assistant^{Commissioner(StateTaxes), Mehdipatnamll Circle, Charminar} Divisicln, HYderabad.

The secretary^{to Govemment (Revenue)cT-ll,.comnrercialTaxes StateTax} D e^p a rtm^{e nt, s l"ctEt""':''i;' 56i;' oi te I a n g'a n a' H yde ra b a d'}

4.TheSecretary(Finance),Unionoflndia,MinistryofFinance,NorthBlock, New Delhi-110^001.

E Ano^(r(a tn sri K P. Amarnath Reddy'^{Advocate[OPUC]}

One CC to Sri Dominic Fernandes,^{(senior standing counsel for CBIC)} [oPUc]

One CC to Sri Arvind Kumar Kata, SC^{for Central Government[OPUC]}

Two CCs to the Special GP^for State^{Tax, High Court for the Stateof} Telangana, at Hyderabad[OuT]

Two CD Copies

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HIGH COURT

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DATED 1010212026

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ORDER

WP.No.3,775^{of 2A26}

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DISPOSING^{OF THE WRIT PETITION} WITHOT'T COSTS

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