Bgr Mining And Infra Limited vs. Joint Commissioner (St) - Telangana High Court, 23 June 2026

Cause title — parties, addresses and appearances

[ 3488 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) TUESDAY, THE TWENTY THIRD DAY OF JUNE TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 19221 OF2026 Between: BGR Mining and lnfra Limited, Having its office at 8-2-596/R Road No 10, Banjara Hilis Hyderabad, Telangana - 5OOO34 Represented by its Authorised Signatory ...PETITIONER AND 1 Joint Commissioner (ST), Punjagutta Division, Hyderabad 2 Appellate Authority, Additional Commissioner (ST) (GR-l) (FAC) l st Floor, C.T. Complex, NamPally, HYderabad 3. State of Telangana, Rep. by its Secretary to Government (Revenue), State Tax Department, Secretariat, Hyderabad ...RESPONDENTS Petition under Article 226 of the constitution of lndra praying that in the crrcumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order, or direction more particularly one in the nature of writ of Mandamus declaring the impugned order in Form GST DRC-07 d1.29.12.2023 vide Ref No. 2D3612230637494 along with its attachment passed by Respondent No.1 levying total penalty of Rs.5,54,541/- (CGST of Rs.1,11,9941 and SGST of Rs.4,42,547t-) for the tax period July, 2017 lo March, 2018, Show Cause Notice dt.2g.og.2o23 vide Ref. No. 2D3609230344O4G in Form DRC-01 along with its attachment issued by the 1st Respondent and the consequential appellate order d1.21.05.2026 passed by the 2nd respondent, as illegal, arbitrary, violative of section 75 (B) of the CGST/SGST Act, 2017 and Article 265 of the Constitution of India and set aside the same and consequently direct the 1't respondent to remove the impugned penalty of Rs.5,54,541/- from the outstanding liability rn the GST Portal l.A. NO: 1 OF 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 grant stay of recovery of penalty pursuant to impugned Order in F:orm GST DRC-07 d129.12.2023 vide Ref No 2D3612230637494 for the tax period July, 2017 to It/larch, 20'18 and pass such further orders in the interest of justice Gounsel for the Petitioner: SRI MOHD MUKHAIRUDDIN Counsel for the Respondents: SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH ANT) THE HON'BLE SRI JUS'fICE G.M.MOHIUDDIN WRIT PETITION No.l922l of 2026 Dated:23.06.2026 Between: BGR Mining & Infra Limited Petitioner and Joint Commissioner (ST), Panj agutta Division, Hyderabad, and 2 others Respondents ORDER: Mr. Mohd. Mukhairuddin. learned counsel appears lor the petrttoner. Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for the respondents.

By the Order for imposition ol penalty and summary of the order in FORM GST DRC-07 dated 29.12.2023 pe(aining to the Financial Year 2017-18. the proper officer irnposed penalty to the tune ol Rs.5,5,1,541/-. The Order dated 19.06.2023 imposing tax was challenged belore the appellate authority, who in turn vide order dated 04.11.2025 held that the demand of tax towards excess Input Tax Credit (ITC) claimed in the ordel impugned therein is unsustainable in law and on facts

) and set aside thc sarne. The petitiorrer was lbund eligitrlr to the clairr o{- ITColRs.55.35.503/..Theallegedineligiblel'lCofRs.4.955/teach under Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) was not actually claimeC' Hence' thc dernand confirmed in the order-In-original rvas held to be unsustainable. Horvever, the surnmary of thc demand in FORM GST API--04' dated 04.1 1.2025 reflected the demand raised bv the Assessinl: Authority |ine IrORM GSl- DRC-07. dated 19.06.2023. 'l'hereafter thc appeal pref'ened b-v the petitioner against penaltl' order ',r'as disrnissed on grounds of delay' Learned counsel for the petitioner submits that when thc tax demand has been dropped, the irnposition of penalty could not sustain ['he period lor filing the rectification application is also over. 'Iherefo e. the petitioner seeks liberty to file a rectification application for c'rrrection of the demand raised under the perialtl'order.

Learned counsel for thc respondent Departtnenl strblnits that though the period of six months tbr sceking rectitlcati()n is over. if the court so deems fit. the proper oftlcer would entertain the rectification apptication and consider it in accordance with law.

Having considered the submissions of the leamed counsel lor the parties and in the t'acts and circumstances above, rve are of the vielv that though the appeal has been disrnissed on grounds of delay' if the tax clerrand has been dropped b1'' the appcllatc authorit)'. the penalty imposed

) To, thereupon and being shown in the order of penalty dated 29.12.2023 needs to be corrected.

Section 75(8) of the CGS'| Act. 2017 provides that where the Appellate Authority or Appellate Tribunal or court modifies the amount of tax determined by the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount oftax so modi fied.

In such circumstances, the petitioner is granted tiberty to approach the proper offlcer for rectiflcation ol the order of penalty in terms ol' Section 75(8) of the CGST Act, 2017. If such an application is made within a period of two weeks, the proper officer shall consider it in accordance with law within a period of two weeks thereafter. The Writ Petition is, accordingly, disposed of. There shall be no order as to costs. Miscellaneous applications pending. ifany. shall stand closed. .M. NAGAMANI ASSISTANT REGISTRAR //' ECTION OFFICER Joint Commissioner (ST), Punjagutta Division, Hyderabad Appellate Authority, Additional Commissioner (ST) (GR-l) (FAC) 1st Floor, C.T. Complex, Nampally, Hyderabad The Secretary to Government (Revenue), State Tax Department, Secretariat, State of Telangana, Hyderabad One CC to SRI MOHD MUKHAIRUDDIN, Advocate [OPUC] Two CCS to SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX, High Court for the State of Telangana, at Hyderabad [OUT] Two CD Copies 1 2 4 5 6 o PVL BS

HIGH COURT DATED: 2310612026 t ORDER WP.No.19221 ot 2026 lr Fe $\ qCr|l .y DISPOSING OF THE WRIT PETITION WITHOUT COSTS toFl 0 o d' -T ), D + abu[r 0