Judgment
[ 3488 J IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE EIGHTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRIJUSTICE G.M, MOHIUDDIN WRIT PETITION NO:17751 OF 2026 Between:
AND Asianet Digital Network Private Limited, Floor, H No. 1-9g/5/4icl20, Divya Sai, 1919..N_o, 3,-Palrika Nagar, Madhapur, Hyderabad, Tetangana - SfjO OAi GSrlN. 36AAOCA289BPlzo Represented by its Deputy Vice president Mr. u.V Satyanarayana Araja ...PETITIONER THE UNION OF lNDlA, Through its Revenue Secretary, Department of Revenue, Ministry of Finance, 128-fuNorth Block, New Delhi THE COMMISSIONER OF CENTRAL TAX, Ranga Reddy cST Commissionerate, GST Bhavan, 7th Floor, L.B. Stadiunr Road, Basheerbagh, Hyderabad - 500004 THE ASSISTANT COMMTSSTONER OF CENTRAL TAX, Madhapur CGST Division, Ranga Reddy CGST Commissionerate, 10-3-301-303, 4th Floor, Serene Heights, Humayun Nagar, Masab Tank, Hyderabad - 500 02g THE SUPERINTENDENT OF CENTRAL TAX, Kondapur_t CGST Range, Madhapur GST Division, Ranga Reddy CGST Commissionerate, UyderaOld, Telangana - 500 028 ...RESPONDENTS Petition under Article 226 ot the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to lssue a writ of certiorari or any other appropriate writ, order or direction quashing and setting aside the lmpugned Notice dated 22.0s.2026, issued by Respondent No.
3 (the Assistant commissioner of central rax, Madhapur CGST Division, Ranga 1 2 J 4
Reddy CGST Commrssionerate) to the Branch Manager, Federal Bank, Thiruvananthapuram, enclosed as Annexure p-1 as being without jurisdiction, passed in contradiction to the principles of natural justice and procedure established by law l.A. NO: 2 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 For the reasons stated rn the accompanying writ Affidavit pending disposal of the writ Petition, it is prayed that this Hon'ble court may be pleased to grant stay on the recovery proceedings vide the rmpugned Notice dated 22.05.2026 issued by the Respondent No. 3 (the Assistant commissioner of central rax, Madhapur cosr Divisron. Ranga Reddy cosr commissionerate) to the Branch Manager, Federar Bank, Thiruvananthapuram, enclosed as Annexure p_1.
Counsel for the Petitioner: SRI ZUBTN J.F POOVATHTNKAL Counsel for the Respondent No.1: SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 to 4: SRI DOMINIC FERNANDES, SENIOR SC FOR CBIC 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 AND THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No.17751 OF 2026 DATED: 18.06.2026 Between:
Asianet Digital Network Private Limited, Rep., by its Deputy Vice President, Mr U.V. Satyanarayana Araj a, Madhapur Hyderabad, Telangana.
... Petitioner AND The Union of India, Through its Revenue Secretary, Department of Revenue, Ministry of Finance, New Delhi and 3 others.
Respondents ORDER:
Mr. Zubin J F Poovathinkal, leamed counsel for the petitioner.
Mr. Dominic Fernandes, Iearned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC) appears for respondent Nos 2 to 4' 2.
The grievance of the petitioner is that the impugned Form GST DRC-13 notice dated 22.05.2026 demanding Pis.27,26,2351- towards interest and penalty is without jurisdiction and contrary to the order-in-original dated 01.12.2025 and summary of the order in Form GST DRC-07 dated 01.12.2025 which quantified only Rs.50,840/- as tax and nil interest and penalty. The recovery proceedings are, therefore, violative of Sections 78 and 79 0f the central Goods and Services Tax Act, 2017, as petitioner has already discharged the entire tax payment of
2 Rs.50.8.10/- and interest ol Rs.73,2i0l- on 20.05.2026 prior to issuance of the impugned notice 3 l here is an apparent discrepancy in the order- in-original and the summary of the order in Form GST DRC-07 which petitioner accepted and made the deposit u ithout a'ailing thc remedy of appear, as there ra..as no demand of tax shown in the summar.v of the order in Form GST DRC_07.
4.
The mattcr r.vas adj ourned on the previous date to enable the leamed Senior standing Counsel lor GBIC to obtain instructions. Leamed senior Standing counsel tbr cBrc has pointed out to the operative part of the adjudication ordcr dated 01.12.2025, which is in following terms:
..ORDER i.
I confirm an I(jST Jax amount of Rs.1.1,45,363/- (Rupees Fourteen Lakhs, Forty Five Thousand Three Hundred and Sixty ihr"" onlyj as demanded in the Shou, Cause Notjce issued under Section 74(9j of the Central Goods and Services Tax Act,20l7 and corresponding provisions of the Telangana Coods and Sen,ices Tax Act. 201'l read with Section 20 ofthe Integrated Goods and Scrvices Tax Act. 2017. The tax amount of Rs.12,23,44g/- foi Fy 20lg_19 and Rs. 1,71,075/- for l-y 2019_20, is appropriated against the demand above and a balance IGST liabiliry'of Rs.50,840/-f61 py 20l g_19 remains outstanding anJis liable for rccoven.as discussed in para l2.l above;
ii.
I confirm the le\) of interest at the applicable rate on the amounts demanded at (i). above under Section 50(3) of tire central Goods and Services Tax Act, 2017 and the corresponding provisions of Telangana Goods and Senices Tax Acr. 2017. read rvith Section 20 of the lntegrated Goods and Services Tax Act. 201 7:
iii I confirm the leq ofpenalty under Section 74(9) read with clause (b) of Section 122(2) o1' the Central Goods and Services 'riax Act, 2017 and rhe corresponding provisions of the 1'elangana Goods and Services Tax Act, 20r?
read along with Section 20 of the lntegrated Goods and Services Tax Act,2017, in respect of the demand confirmed ut fil ,boue.
The Shorv Cause Notice No.l5/2025_26 dated 23_06-1025 issued by Superintendent, S,qG- 1 I. .{udit_ I Commissionerate Hyderabad to N,I/s Asianet Digitar Net\4.rk private Limited. stands disposed of in t'he manner stated above.
3 Digitally signed by Gugulothu Swami Dinesh Naik Date: 0 I - I 2 -2025 l7 :22:08 (G S Dinesh Naik) Superintendent Kondapur-1 Range" 5.
Form GST DRC-07 - Summary of the order, however, shows only the tax of Rs.50,840i- which the petitioner had deposited apart from the interest of Rs.73,210i-.
6.
Leamed Senior Standing Counsel for CBIC submits that a rectified demand in Form GST DRC-07 would be issued reflecting the correct amount on the balance interest and penalty.
7.
Learned counsel for the petitioner submits that in the absence of any demand on penalty, the impugned garnishee notice was not proper. He submits that if any demand of interest and penalty is raised in the rectified summary of the order, the petitioner would prefer an appeal, if so advised. However, for the present, the recovery notice in Form GST DRC- 13 should not be allowed to stand.
8.
We have taken note of the discrepancy in the order-in-original and the summary of the order in respect of the proceedings for financial year 2018-19 initiated under Section 74 of the Central Goods and Services Tax Act, 2017 against the petitioner. Since the summary of the order in Form GST DRC-07 does not reflect the interest and penalty as per the order-in-original, the respondents are at liberty to rectifr the Form GST DRC-07. It will be open for l
4 the petitioner to take recourse to lawful remedy thereafter. However, the present garnishee notice in F'orm GSI' DRC- I 3, dated 22.05.2026 raising a demand of Pis.2'7,26.2351- torr ards interest and penalty cannot be sustained and is accordingl-v-' set aside 9.
The ivrit petition is disposed of rvith the aforesaid observations. No order as to costs Miscellaneous applications. if any pending. shall stand closed //TRUE COPY// SD/-V. HARI PRASAD DEPUTY REGISTRAR SECTION OFFICER To It PMK BS 2 The Revenue Secretarv. Union Of lndia, Department of Revenue, Ministry of Finarrce. '128-AlNorth Eilock, New Delhi The Commissioner Of Central Tax Ranga Reddy GST Commissionerate, GST Bhavan. 7th Floor, L.B. Stadium frorO,-Ar'"f,L"rbagh, Hyderabad _ 500004 3 The Assistant commissioner of centrar rax, Madhapur GGST Division, Ranga Reddy CGST Commissionerate, f O_i_aOf _SOa, 4th Ftoor, Serene Heights, Humayun Nagar, Masab fant fiyAeiabri _ SOO OZA 4 The Superrntendent Of 9:nl1^Irx, Kondapur_t CGST Range, Madhapur :Sro U"Jt,", Ransa Reddy ccsr commissln"i"t" HyaeraolJ, T;;ril;
5 One CC to SRI ZUBTN J F POOVATH|NKAL, Advocate tOpUCl 6 One CC to SRt DOM|NtC FERNANDES, SC FOR CB|C [OPUC] 7 One CC to SRI N BHUJANGA RAO, Deputy Solicitor cenerat of lndia [OpUC] 8 Two CD Copies
HIGH COURT DATED: 1810612026 ORDER WP.No.17751 of 2026 I DISPOSING OF THE WRIT PETITION WITHOUT COSTS 5.-r*r ta};-\xcN.
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1 6 JUL 2026 O6SPATCH >Z'oI t I !t{r{ iL t C v o U