M/ S. Edique Solutions Private Limited vs. The State Of Telangana

Held

The Court did not delve into the merits of the contentions raised by either party. Instead, acknowledging the Petitioner's request for liberty to prefer an appeal, the Court granted the Petitioner two weeks to file an appeal against the impugned order. This appeal should include a statutory pre-deposit and a delay condonation application. The Court directed that the appellate authority would consider the question of delay sympathetically, taking into account the facts and circumstances presented. If satisfied with the delay condonation, the appellate authority is to decide the appeal on its merits. During the two-week period for filing the appeal, no coercive steps were to be taken against the Petitioner pursuant to the impugned garnishee notice. The writ petition was disposed of.

Facts

M/s. Edique Solutions Private Limited (Petitioner) filed a writ petition before the Telangana High Court challenging an assessment order and a summary order in Form GST DRC-07, both dated 27.02.2025, passed by the Assistant Commissioner (Enforcement Unit), Hyderabad (Respondent No. 3). The Petitioner also challenged a consequential garnishee notice dated 06.03.2026 for attachment of its bank account with Kotak Mahindra Bank. The Petitioner contended that the impugned orders were violative of natural justice as they were uploaded on the GST portal without being served on them, and they only became aware of the liability upon receiving the garnishee notice.

Key Issues

1. Whether the assessment order and summary order dated 27.02.2025, passed by Respondent No. 3, are liable to be quashed on the grounds of violation of principles of natural justice, specifically non-service of the said orders on the Petitioner, as contended by the Petitioner? Petitioner's Arguments: The Petitioner argued that the assessment order and summary order were uploaded on the GST portal without proper service, leading to a violation of natural justice. They only became aware of the liability through a garnishee notice for bank account attachment. Revenue's Arguments: The Revenue submitted that the Petitioner is at liberty to prefer an appeal against the impugned order and take all available grounds before the appellate authority.