M/S. Kakatiya Energy Systems PVT. LTD vs. The Principal Commissioner Of Central Tax

Held

The Court, without delving into the merits of the case, held that the Petitioner has an effective alternative remedy of appeal before the Goods and Services Tax Appellate Tribunal. This conclusion was based on the submission by the learned Senior Standing Counsel for the CBIC, referencing a notification dated June 30, 2026, issued by the Department of Revenue, Ministry of Finance, Government of India, which stipulated that appeals could be filed before the Tribunal by July 31, 2026. Consequently, the Court disposed of the writ petition, granting liberty to the Petitioner to approach the Goods and Services Tax Appellate Tribunal within the stipulated period for filing the appeal, subject to statutory pre-deposit. No order as to costs was made.

Facts

M/s. Kakatiya Energy Systems Pvt. Ltd. (Petitioner) filed a writ petition before the Telangana High Court challenging an Order-in-Appeal dated December 31, 2025, which partly allowed their appeal against an Order-in-Original dated August 31, 2024. The challenge also extended to the Order-in-Original, addendum/corrigendum, and several DRC-07 notices issued by the Assistant Commissioner of Central Tax and the Principal Commissioner of Central Tax (Respondents). The Petitioner sought to set aside these orders as erroneous, without jurisdiction, arbitrary, illegal, and in violation of natural justice and mandatory procedures. They also sought redetermination of their tax liability. The petition was filed under Article 226 of the Constitution of India.

Key Issues

1. Whether the Petitioner has an effective alternative remedy of appeal before the Goods and Services Tax Appellate Tribunal against the impugned Order-in-Appeal dated December 31, 2025, as per the notification dated June 30, 2026, issued by the Department of Revenue, Ministry of Finance, Government of India? Petitioner's Contention: The Petitioner challenged the impugned orders on multiple grounds, including jurisdictional errors, arbitrariness, illegality, and violation of natural justice. They sought a writ of mandamus for redetermination of their tax liability. Revenue's Contention: The learned Senior Standing Counsel for the CBIC, appearing for the respondents, submitted that the Petitioner has an effective remedy of appeal before the Goods and Services Tax Appellate Tribunal, which can be filed by July 31, 2026, as per a notification dated June 30, 2026.