BharatTaxGST

M/S. Eshwara Chandra Agencies vs. Union Of INDIA Represented By Its Secretary

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WP/4332/2026HC TelanganaGSTCNR HBHC01008568202601 July 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN7 pages
For Petitioner: SRl. PUPPALA BHARATH NANDANFor Respondent: SRI A L BHARADWAJINI

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Cause title — parties, addresses and appearances
[ 34881 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIRST DAY OF JULY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRIAPARESH KUMAR SINGH AND THE HONOURABLE SRIJUSTICE G'M. MOHIUDDIN WRIT PETITI ONNO:4332 oF 2026 Between: AND 1 2 M/s. Eshwara Chandra Agencies, Represented by -its Proprietor Va.nguri Ch"nJra Shekhar, nged a"bout 50 years, Plot No- 3^8' Hastinapuram North f*t"niion, Hastinapuiam, Hyderabad, Telangana' 500074' ...PETITIONER Union of lndia Represented by its Secretary, Department of Revenue' Ministry of Finance, North Block, New Delhi- 1 10001 . in" Cor.i."ioner of Customs and Central Tax' Ranga Reddy GST dorrir.ion"r"te, GST Bhavanm H'No 1-98/7/43' VIP Hills' Jai Hind Enclave' Madhapur, HYderabad- 500081. The Assistant Commissioner of Customs and Central Tax' Nagole CGST ;l;;J";:-il Floor, sai Bitali Arcaoe, 23-.e0.8' Plot No'183 and 184' ;;.N;.9r, Co-operative Bank Colonv, Nagole, Hld:labad- 500068' ii"'-s-rp1t'nt"ndent of c"ntr.r-i,i, Naiole G-GST Division' 1st Floor' sai e"LiiAI"aO", 2-3-908, Plot No.183 ano-ta+, Sv No 92' Co-operative Bank Colony, Nagole, HYderabad- 500068' ...RESPONDENTS 3 4 Petition under Article 226 oI lhe Constitution of lndia praying that in the circumstancesstatedintheaffidavitfiledtherewith,theHighCourtmaybepleased toissueaWritororder,moreparticularlyinthenatureofWritofMandamusorany other appropriate Writ, declaring the impugned order vide Form GST DRC-07 in ReferenceNo.ZD36082414475Tw,dated30/08/2024alongwithorder-in.original No.5512024-24-ADJN-GST dated 16/08/2024 and the DRC-01 vide Reference No' 2D3608241446156 dated 3OtOBl2O24 along with Show Cause Notice vide SCN o.1o12024-25.(Supdt)dated1110612024,thathavebeenissuedintheGSTportal - without either physically nor digitally signed issued by duplicating the same demand on same issue, issued by wrongfully invoking the provisions of Section 74 and issued a common consolidated order for all the FYs from 2018,19 lo 2022-23 as arbitrary, ab initio void, contrary to the provisions of CGST Act and Rules, 2017 and TGST Act and Rules, 2017 and violative of Articles 19(1)(g) and 300A of the lndian Constitution l.A. NO: 1OF 2026 Petition under Section 15'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay an interim relief to restrain the Respondents from initiating any action to recover the demands confirmed under the impugned Order in Form GST DRC , 07 Reference No.2D360824 1 447 57W daled 30 I 0812024 l.A. NO: 2OF 2026 Petition under Section '151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of FORM GST DRC-13 daled 2510112025 and two FORM GST DRC- 'l 3's dated 3010112026 to recover the demands confirmed under the impugned order vide DRC-07 Reference No 2D360824144757W, dated 30-08-2024along with irttachment for FYs 20'18-19 to 2022-23 pending disposal of this writ petition as the impugned orders themselves are without jurisdiction in view of the grounds of appeal supra Counsel for the Petitioner: SRl. PUPPALA BHARATH NANDAN Counsel for the Respondent No.1: SRI A L BHARADWAJINI Counsel for the Respondent Nos. 2to4: SRl. R SUSHANTH REDDY (sc FoR cBtc)

The Court made the following: ORDER

- INT E HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAI) The Hon'ble The Chief Justice Sri Aparesh Kumar sinsh and The Hon'ble Sri JusticeG.M.Mohiuddin Writ Petition No.4332 of2026 Datedz O1.07.2026 Between: N{/s. Eshwara Chandra Agenctes, Rep. by its Proprietor Vanguri Chandra Shekhar, aged about 50 years, Hastinapurarn, Hyderabad' . . . Petitioner AND Union of India, Represented by its SecretarY, Department of Revenue, Ministry of Finance, North Block, New Delhi-I10001 and three others. . . . Respondents ORDER: Heard Mr. Puppala Bharath Nandan, learned counsel for the petitioner and Mr. R. Sushanth Reddy, learned Standing Counsel for central Board of Indirect Taxes and customs (CBIC), appearing for respondent Nos.2 to 4. 2.TheWritPetitionwasfiledassailingtheorder-in-originaldated 16.08.2024 and the summary of the order in Form GST DRC-07 dated 30.08.2024 on the plea that the entire amount was appropriated as per I I

- 2 the order-in-original and there was a discrepancy in the aforesaid order- in-original and summary of the order in Form GST DRC-07. The matter was adjourned for learned Standing Counsel for CBIC to take steps for rectification of the summary of the order. The rectification of the summary of the order in Form GST DRC-07 has been issued on 25.06.2026

3.

At this stage, learned counsel for the petitioner seeks liberty to assail the order- in-original, as it also imposes penalty

4.

The praycr has been opposed by the leamed Standing Counsel for CBIC. He has taken a plea that the petitioner had suppressed the fact relating to its voluntary payment of the tax along with interest and penalty raised rn the GST Audit Spot Memo dated 25.04.2024. The petitioner had also filrnished its reply to the show-cause notice stating that except point No.4, on which ITC has been reversed to the extent of tax liability, remaining tax, interest and penalty were paid and the same was mentioned in the final audit report. This was also not brought to the notice of this Court. Therefore, liberty to prefer an appeal may not be granted. t

- 3 \

5.

We have considered the submissions of leamed counsel for the parties.

6.

The main grievance relating to discrepancy in the order-in- original and the summary of the order in Form GST DRC-07 had been rectified during pendency of this Writ Petition. The order-in-original besides imposing tax and interest has also imposed penalty in terms of Sections 74 and 122(2)0) of the Central Goods and Services Tax Act, 2017 (for short, 'the Act'), on the demands. The petitioner's plea that extended provisions of Section 74 of the Act could not have been invoked was rejected by the Proper Officer.

7.

In view of the findings rendered in the order-in-original, which also covers penalty under Section 122(2)(a) of the Act, we are of the view that the petitioner may have liberty to approach the appellate authority by filing an appeal along with a delay condonation application and statutory pre-deposit within a period of two weeks' Needless to say, the petitioner may take all such grounds of law and facts in the memo of appeal as are available to it' If the appellate authority is satisfied on the point of delay, it may proceed to decide the - 4 appeal on merits in accordance with law. We have, however, not expressed any opinion on the merits of the case of the parties'

8.

The Writ Petition is disposed of with the aforesaid liberty' However, there shall be no order as to costs' Miscellaneous applications pending, if any, sha1l stand closed. //// . AHMED ABDULLAH KHAN ASSISTANT REGISTRAR SECTION OFFICER G- To, Bm TKS

1.

The Union of lndia Represented by its Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi- '1 '10001 .

2.

The iommissioner of Customs and Central Tax, Ranga Reddy GST Commissionerate, GST Bhavanm H.No.1-98i7l43, VIP Hills, Jai Hind Enclave, Madhapur, Hyderabad- 500081. 3. The Assistant Commissioner of Customs and Central Tax, Nagole CGST Division, '1 st Floor, Sai Balaji Arcade, 2-3-908, Plot No. 1 B3 and '1 84, Sy.No.92, Co-operative Bank Colony, Nagole, Hyderabad- 500068'

4.

The Superintendent of Central Tax, Nagole CGST Division, 1st Floor, Sai Balaji Arcade, 2-3-908, Plot No.183 and 184, Sy.No.92, Co-operative Bank Colony, Nagole, Hyderabad- 500068. 5. One CC to SRl. PUPPALA BHARATH NANDAN Advocate [OPUC]

6.

One CC to Ms. A L BHARADWAJINI, Advocate [OPUC]

7.

One CC to SRl. R SUSHANTH REDDY (SC FOR CBIC) [OPUC]

8.

Two CD Copies &,

HIGH COURT DATED: 0110712026 ORDER WP.No.4332 o12026 HE Sra \vtr':\ .l' '\d' JUL 2026 t o/ t \// r" t f5 14169 ,. c.l t D DISPOSTNG OF THE WRIT PETITION WITHOUT COSTS @,,t \A,A \1, t

Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.