M/S P.R.Productions vs. Assistant Commissioner Of Central Tax
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Cause title — parties, addresses and appearances
The Court made the following: ORDER
IN THE HIGII COTIRT FOR TITE STATE OF TELA}IGAIIA AT EYDERAB.AD THE HON'BLE THE CHIEF JUSTICE SRI APARESH K(]MAR SINGH AND TFF HON'BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No.38758 of 2025 DATED :17.06.2026 Between M/s. P.R. Productions ... Petitioner AND Assistant Commissioner of Central Tax, Office of the Deputy/Assistant Commissioner of Central Tax, Punjagutta Division, Hyderabad and trYo others ... Respondents ORDER: Heard Sri Goondla Venkateswarlu, leamed counsel appearing for petitioner and Sri D. Raghavendar Rao, leamed Senior Standing Counsel for Central Board of Indirect Taxes and Customs appearing for respondent No. [.
The garnishee notice in FORM GST DRC-li dated 06.L1.2025 issued under Rule t45(l) of the Centrat Coods and Services Tax Rules,2017 (for short'the Rules'), read with Section 79 (1) (c) of the Central Goods and Services Tax Act,2017 (for short 'the Act'), has been challenged by the petitioner on the I , ground that it does not precede any adjuCication.
- 2 HCJ {A1(rS, Jl& Gl{[I. J w P No 38754 of 2025 under Section 75(12) of the Act, in the case of self-assessed tax,
Counter-affidavit has been filed by respondent No.l.
Learned counsel for respondent No.l has submitted that recourse to Section 79 of the Act can be undertaken without any adjudication proceedings.
The present case relates to tax period 2021-22. The self--assessed tax return in respect of which the impugned garnishee notice has been issued is for the period fiom April, 2021, to Septernber, 2021. What is under dispute is applicability of the explanation to sub-section (12) of Section 75 of the Act introduced rvitlr effbct frcm 01.01.2022 by the Finance Act, 2021, which provides that the expression "self-assessed tax" shall inctude the tar payable in respect of details of oufward supplies funtished under Section 37 of the Act, but not included in the return lurnished under Section 39 of the Act.
Learned counsel for the petitioner submits that the 'cxplanation' shall operate prospectively from the date on rvhich it has been notifled
Learned counsel for respondent No.l, on the other hand, submits thar it is clariflcatorv in nature
., HCI (AKiS, J) & GMM, J w.P.No.3875a of 2025
In the present case, the impugned garnishee notice which covers Rs.44,68,7241- is in respect of discrepancy in the details of outward supplies furnished under Section 37 of the Act but not inctuded in the retum under Section 39 0fthe Act for the relevant tax period. g. In support of the plea of prospectivity, leamed counsel for the petitioner has referred to CBEC Instruction No'O1/2022-GST dated 07.01.2022. It lays down the guidelines for recovery proceedings under Section 79 of the Act in the cases covered under explanation to sub-section (12) of Section 75 of the Act' The hrst paragraph of the guidelines is extracted hereunder for better appreciation. "Sub-section (12) of section 75 of thc CGS-I Act, 2017 (hereinafter referred to as "the Acf') provides that notwithstanding anything c.ontained in section 73 or scction 74 o[ the Act, where any amount of self-assessed tax in accordance with the retum furnished under section 39 remains unpaid' either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under th€ provisions of section 79. An explanation has been added to sub-section ( l2) ofs on 75 section 114 of the Finance Act 2021 with effect from 01 01.2022 to claifv that ''se[[-a SSessed tax" shall include the tax ble in re ect of outward s ies. the details of which have been fumished under section 17. but not included 3 ) in the fumished under section 39-" (Emphasrs apptied)
- HCJ (AI{IS, J) & CMITI, J w.P No 38754 of2025 The CBIC b_y virtue of this instruction has clarified that the explanation added to sub-section (12) ofSection 75 ofthe Actvide Section 1 l4 of the Finance Act,202l, with effect from 01.01 .2022 is to clarify that "self-assessed tax" shall include the tax payable in respect of outu,ard supplies, the details of which have been furnished under Section 37 of the Act, but not included in the retum fumished under Section 39 of the Act.
In our opinion, the explanation does not impose any additional liability beyond what the petitioner would have been othenvise Iiable because of the mismatch in the details of outward supplies r.r,hich have been fumished under Section 37 of the Act, but not includcd in the return fumished under Section 39 of the Act. 'I.he e.xplanation added to sub-section (12) of Section 75 of the Act reads as u nder: '' [: rplanation. - For the purposes of this sub-section, the erprcssion "self'-assessed tax" shall include the tax payable in rcspcct ol details of outward supplies fumished under scctron i7, hut not included in the retum fumished under scctlon,19 " Noticing this discrepancy under Section 75(12) of the Act, the impLr::necl r.co\ cr1 proceedings were initiated. However, though an e rnail \\ as scnr ro the pcririoner on 25.04.2024 for necessarv 4 tI
HCJ (AI.irS. J) & GMM, J w.P-No.3875a ot2025 compliance, the provisions of Rule 88C of the Rules were not comptied with, as evident from the attachment of the said intimation. Rule 88C of the Rules is extracted hereunder: "88C. Manner of dealing with difference in liabili$ reported in statement of outward supplies and that reported in return.-(l) Where the tax payable by a registered person, in accordance with the statement of outward supplies fumished by him in FORM GST-I, as amended in FORM GSTR- l A if any' or using the lnvoice Fumishing Facility in respect of a tax period, exceeds the amount of tax payable by such person in accordance with the return for that period furnished by him in FORM GSTR- 38, by such amount and such percentage, as may be recommended by the Council, the said registered person shall bc intimated of such difference in Part A of FORM GST DRC- 018, electronically on the comrnon portal, and a copy o[ such intimation shall also be sent to his e-mail address provided at thc time of registration or as amended from time to tilne, highlighting the said difference and dtecting him to- (a) pay the differential tax liability, along with interest under section 50, through FORM GST DRC43; or (b) explain the afmesaid difference in tax payable on the common portal, within a period of seven da1s. (2) The registered person referred to sub-rule (l) shall' upon receipt of the intimation refentd to in that sub-rule' either,- (a) pay the amount of ihe differential tax liability, as specified in Part A of FoRM GST DRC-018, tutly or partially, along with interest under section 50, tkough FORM GST DRC{3 and fumish the details thermf in Part B of FORM GST DRC-OIB electronically on thc comnron portal; or (b) fumish a repty electmnically on the conunorl portzrl, incorporating reasons in respect of that pan ol the 5
-- HCJ {A]&S. JI & GMM- J w.P.No.3875a of2025 dilferential tax liabilrty' that has remained unpaid, if any, in Part B ol FORNI GSl' DRC-01B, rvithin the period spccified in the said sub-rule (3) Where any amount spccified tn the intirnation refcrred to in sub-rule (l) remains unpaid rvithin the period specified in that sub-rule and rvhcrc no erplanatron or reason is fumished by the registered persol rn delauh or rvhere the explanation or reason furnishcd by such pcrson is not found to be acceptable by the proper officcr, thc said amount shall be recoverable in accordance wrth the provisions of Section 79." As such, the petitioner could not respond to the intimation required to be issued in thc prcscribed FORM GST DRC - 0lB by the Revenue. The above rule provides that the Proper Officer if not satisfied with the e\planation fumished by the registered person in default would initiatc the recovery proceedings under Section 79 of the Act. ll. In such circurnstances, after consideration of the facts and circumstances of the casc and the relevant provisions of the Act and the Rules rct-erreri to hereinabove, we are of the view that respondent No. Ii Propcr Oflicer would issue the intimation in the prescribed fbrrnat undcr Rule 88C of the Rules giving opportunity to the petitioner ro lirrnish cxplanation, in the prescribed FORM GST DRC'-0 lll. unon consideration ol which only, any further actioll for rcco\ er\ :houltl be initiated against the petitioner. 6 \
"'---'--"""" t 7 HC.J {AXiS, Jl & CMM. J w.P.No.3a75a of 2025 To I'SK IKS
In the light of what has been stated hereinabove, the impugned garnishee notice issued in FORM GST DRC-13 dated 06.11.2025 is set aside. Needless to say, upon compliance of the procedure prescribed under the relevant provisions of the Act and the Rules, it would be open for the Revenue to initiate proceedings if the petitioner fails to fumish satisfactory explanation to the intimation under FORM GST DRC-01B. The instant Writ Petition is disposed of in the aforesaid manner. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed. P.PONNA KRISHNA A ISTANT REGISTRAR //// S TION OFFICER 1 Assistant Commissioner of Cenkal Tax, Office o e Deputy/ Assistant Commissioner of Central Tax, Punjagutta Division, 2rd floor, Amiso Plaza, H.No B-2-677lP. Road No-12, Banjara Hills, Hyderabad - PIN- 500034. 2. The Secretary to Government of lndia, Union of lndia, Ministry of Frnance, Revenue Department, North Block, Central Secretariat, New Delhi - PIN- -110 001 3 One CC to SRI GOONDLA VENKATESWARLU, Advocate [OPUC]
One CC to SRI D RAGHAVENDAR RAO, SENIOR SC FOR CBIC [OPUC] 5 One CC to DEPUTY SOLICITOR GENERAL OF INDIA IOPUC] 6 Two CD Copies #
HIGH COURT DATED: 1710612026 ORDER WP.No.38758 of 2025 ( Dz Ct A o$ lHE Sl1 1 6 il]l 202$ DISPOSING OF THE WRIT PETITION WITHOUT COSTS. o;{r* ''t !q: '..'ru 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.