M/S Sri Infra vs. The State Tax Officer
Held
The Court observed that in such a scenario, the primary recourse for the assessee is to seek rectification of the impugned order by filing an application under Section 161 of the Act. Consequently, the Court allowed the petitioner to approach the proper officer within one week with a rectification application, supported by all relevant documents. The proper officer is directed to entertain this application, pass an order thereon within three weeks, and provide one opportunity of hearing to the petitioner. The Court disposed of the writ petition with these observations, without any order as to costs. The specific finding on the legality of the demand and penalty, as per the initial prayer, was not directly addressed, as the matter was remitted for rectification.
Facts
The petitioner, M/s Sri Infra, has filed a writ petition challenging an order dated 12.11.2025 passed by the State Tax Officer. This order, in Form GST DRC-07, imposed a demand of Rs. 73.37 Lakhs along with a 100% penalty. The proceedings relate to the tax periods from 2019-20 to 2021-22, under Section 73 of the Telangana Goods and Services Tax Act, 2017. The petitioner contends that they had discharged their GST liability on the entire invoice amount of Rs. 16.96 crores, yet a show cause notice was issued on 10.02.2022, leading to the impugned adjudication. The petitioner sought to quash the demand and penalty, and also prayed for a stay on bank account attachment.
Key Issues
1. Whether the impugned order dated 12.11.2025, imposing a demand of Rs. 73.37 Lakhs and 100% penalty, is illegal, arbitrary, and violative of Articles 14 and 19(1)(g) of the Constitution of India, particularly when the petitioner claims to have discharged the full GST liability on the invoice amount of Rs. 16.96 crores for the periods 2019-20 to 2021-22, despite a show cause notice being issued on 10.02.2022. (Question of law and mixed fact and law, turning on Section 73 of the Telangana GST Act, 2017). Petitioner's arguments: The petitioner argued that the demand and penalty were imposed despite their having discharged the full GST liability. They contended that the proceedings were illegal and arbitrary, violating their constitutional rights. Respondents' arguments: The respondents, represented by the Special Government Pleader, did not explicitly record arguments in the judgment. However, the Court's direction implies an acknowledgment of a procedural recourse available to the petitioner.
Sections Cited
Section 73, Section 161
AI-generated summary — verify with the full judgment below
[ 3488 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) WEDNESDAY, THE TWENTY NINTH DAY OF JULY TWO THOUSAND AND TWENry SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETI TION NO: 24505 OF 2026 Between: M/s Sri lnfra, D.No.38-29i52, Telecom colony, Sainkpuri, IMedchal Malkangiri, Hyderabad, Telangana, 500094. GSTIN. 36ADOFS1442Fl21' Rep. by its Authorized Representative Gadiraju Suresh Varma ...PETITIONER AND 1. The State Tax Officer, Abids Circle, Commercial Tax Department, Hyderabad, Telangana State
Principal Commissioner, 2nd Floor, GST Bhavan, Basheerbagh, Hyderabad, Telangana, 500004
State of Telangana, Through Principal Secretary to Government, Revenue Department (Commercial Tax), Hyderabad, Telangana 500022 ...RESPONDENTS 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 1) lssue a writ, order or Direction, more particularly one in the percent nature of writ of certiorari quashing the proceedings in Form GST DRC 07 bearing Reference No. 2D361 125
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