BharatTaxGST

M/S. Phoenix Spaces (Guntur)Private Limited vs. The Additional Commissioner Of Central Tax

Original PDF →
WP/9326/2026HC TelanganaGSTCNR HBHC01019409202608 June 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN7 pages
For Petitioner: M/s P.VENKAT PRASAD, COUNSEL, REPRESENTING, M/s. P.V.PRASAD ASSOCIATESFor Respondent: SRI K.PRASHANT, sRr. DoMtNtc FERNANDES (SEN|OR STANDTNG COUNSEL FOR CB|C), C:ounsel for the Respondent No.4

No AI summary yet for this judgment.

Cause title — parties, addresses and appearances
[ 3488 ] IN THE HIGH GOURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE EIGHTH DAY OF JUNE TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 93260F 2026 Between: AND M/s Phoenix Spaces (Guntur)Private Limited, Sy No.2Z t1 to 27t4, Nanakramguda, Gachibowli, Ranga Reddy, Telangana- 5OO 032 Represented by its Director B. Srikanth S/o Late B Ramesh Chinder Aged about 57 years, Rlo. 8-1-284lNMEl8, Viila No-8, Miilennium Exotica, SheiXpet, Gotionda, Hyderabad, Telangana- 500008. .....PETITIONER . The Additional commissioner of central rax, Appeals-l commissionerate, Hyderabad, 7th Floor, Kendriya Shulk Bhavan, Basheerbagh, Hyderabad_ 500004. 2. The Assistant commissioner of central tax, Gachibowli Division, 10-3-301- 303, 4th Floor, Serene Heights, Humayun Nagar, Masab Tank, Hyderabad_ 500028. 3. The Assistant Commissioner of Central Tax, Audit Circle Vlll, Audit-l Commissionerate, H.No.3-4-1 18/1 , NR, 1St Floor, Elegant Maharaja, Ramanthapur, Hyderabad- 50001 3. 4. Axis Bank, NIFT Campus, Hitech City, Opp Cyber Towers, Madhapur_500081 Represented by its Branch Manager. 5. Union of lndia, Ministry of Finance, Represented by its Secretary, North Block, New Delhi-110 001. .....RESPONDENTS Petition Under Article 226 oI lhe constitution of lndia praying that in the circumstances 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 a. Recovery notice in Form GST DRC-13 vide C.No. 1 lv/l6/GCHBL.RGl240l2o24 dated 13.02.2025 issued by the Respondent No. 2 to the Respondent No. 4 as being void, arbitrary, illegal, without jurisdiction, without authority of law apart from being violative of Articles 1a 19(l)(g) and 265 of the constitution of India, and to consequenfly set asrde the same and/or pass such further or other order(s) as this Hon'ble court may deem fit and proper in the circumstances of the case. b.consequen y, direct the Respondent no. 2 to forthwith refund all amounts recovered from the Petitioners bank account pursuant to the impugned recovery proceedrngs, along with applicable interest, as this Hon'ble Court may deem fit and/or pass such further or other orde(s) as this Hon'ble Court may deem fit and proper in the circumstances of the case. Award exemplary and punitive costs against Respondent No.2 for arbitrary, mala fide and oppressive exercise of power, and direct payment of the Petitioners costs of and incidental to this petition on an indemnity basis. LA.NO:1 OF 2026 Petition Under Section 15'1 CPC praying that in the crrcumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the recovery notice in Form GST DRC-13 Form GST DRC-13 vide C.No. lv/l6/GCHBLRGl240l2024 dated 13 02.2025 issued by the Respondent No. 2 to the Respondent No.4. |.A.NO:2 OF 2026 Petrtion 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 direct the Respondents to refund the amounts recovered from the petitioner,s bank account and restrain the Respondents from taking any further coercive steps agalnst the petitioner. Counsel for the Petitioner : M/s P.VENKAT PRASAD, COUNSEL REPRESENTING M/s. P.V.PRASAD ASSOCIATES Counsel for the Respondent Nos.1 to 3 : SRI K.PRASHANT sRr. DoMtNtc FERNANDES (SEN|OR STANDTNG COUNSEL FOR CB|C) C:ounsel for the Respondent No.4 : - Counsel for the Respondent No.5 : SRI N.BHUJANGA RAO, DEpUTy SOLICITOR GENERAL OF INDIA

The Court made the following ORDER

fiey,@ IN THE HIGH COURT FOR THE STATE OF TELANGANA ATHYDERABAD THE HON,BLE THE CHIEF' USTICE SRI APARESH KUMARSINGH AND THE HON'BT,F], SRI JUSTICE G.M.MOHIUDDIN WRIT PETITIoN No.9326 of2026 DATED: 08.06.2026 Between: Phoenix Spaces (Guntur) Private Limited, SY No.27l1 to 27/4, Nanakramguda, Gachibowli, Ranga Reddy, Telangana-500 032 Represented by its Director B.Srikanth S/o.Late B.Ramesh Chander ANT) ...Petitioner The Additional Commissioner of Central Tax, Appeals-I Commissionerate, Hyderabad, 7'h Floor, Kendriya Shulk Bhavan, Basheerbagh, Hyderabad - 500 004 & 4 others Respondents ORDER: Heard Mr. P.Venkat prasad, learned counsel representing M/s.P v Prasad Associates, appearing for the petitioner and Mr. K.prashant, leamed counsel appearing for respondent Nos.1 to 3 through video conferencing.

2

2.

Reference is madc to the order dated 31.03.2026 u.hich reads as under: "Nlr. P. Venkat Prasad, leamed counsel represents .Ws. P.V. Prasad Associates. frrr the petrtioncr. Mr. I)ominic Fernandes, Ieamed Senior Sttrnding Counsel for Central Board of lndrrect Taxes and Customs (CBIC) appears for respondent Nos.l to 3 Thc order-rn original dated 24.12.2024 imposed tax liability of Rs.l ,1 I .71 .7401 together with penalty and applicable interest on the petitioner. Before the appeal period was expired, gamrshee notice in Form GST DRC-I3 was issuerl on 1 3.02.2016, but it appears from Annexure-P I that the said notice was received on 2l .02.2026 by respondent No,4 Bank. r\ccording to thc lretrtioner, the entire amount uas debrted on the same rLare frorn rts account. On the other hand, petilioner has preferred an appeal agarnst the order-in- original ori )2|3 2025, which was rejected. The summery o: the demand in I oun APl.-04 was issued on 19.01.2026. The period for preferring an appeal under Secuon I l2 of rhe Central Goods and Services Tax Act, 2017 belbre the learned Goods and Senices 1ax Appellate Tnbunal (GSTAT) has not expired. I.eamcd counsel lbr the pctitioner submits that in the meantimc, the entire tax ILability has becn recovered in an illegal and arbitrary manner though the petitioner had rnade a pre-deposit by filing its hrst appeal and is inclined to avarl its sccond appeal. the rvindow period for which is available till 3 0.06.2026. Leamed Senior Standing Counsel for CBIC is allowed onc week time to ger instructions. List lhe nratter on 09.04.2026."

3.

The rratter wzrs oncc again adjourned to 09.04.2026 to enable the learned counsel fbr respondcnt Nos. 1 to 3 to seek instructions. Hrtwever, on the next date i.e., 23.04.2026.I'urther tirne was sought by leamed counsel for respondent ;' .\os.l to 3 to obtain rnstructions

lw 3

4.

Learned counsel for the petitioner brought to the notice of this Court that after the previous order, the tax liability recovered from the petitioner had been re-credited to the E-Cash ledger ofthe petitioner though ideally it ought to have been refunded to the petitioner as it was recovered from the Bank account

5.

Today when the matter has been taken up, learned leamed Senior Standing Counsel for CBIC seeks further time to obtain instructions. 6- Leamed counsel for the petitioner submits that the time for filing Second Appeal is still there. Petitioner, due to recovery of an amount of Rs.1,1 1,71,740l- from its Bank account, has been unable to undertake business transactions. Therefore, if the Department has chosen to re-credit the amount recovered from its Bank account to the E-cash ledger, there should not be any impediment for the Department to refund it to the petitioner's Bank account. 7 - In the aforesaid facts and circumstances and the fact that the issue is confined to re-credit or refund of the amount recovered by the Revenue before

the appeal period under Section l 12 ofthe central Goods and Services Tax Act, 2017, this court, instead ofgranting further adjournments to the Revenue, feels inclined to dispose of the writ petition with liberty to the petitioner to file an application for refund of the amount re-credited to the E-cash ledger after recovery fiom its Bank account. If such an application is made within a week,

fr- I respondent No.2-.A.ssistant Commissioner of Cenlral Tax, Appeals-l Commissionerate, Hyderabad, would take a decision thcreupon in accordance with law in the light of thc observations made hereinabove within a period of one week thereafter.

8.

The Writ Petition is, accordingly, disposed of. However, there shall be no order as to costs N{iscellaneous applications pending, if any, shall stand closed. C. DEEPIKA qrprANT REGISTRAR \*- Ir SECTION OFFICER v/ The Additional commissioner of central Tax, Appeals-l commissionerate, HyderabadTthFloor.KendriyaShulkBhavan.Basheerbagh,Hyderabad- 500004 The Assistant commissioner of central tax, Gachibowli Division, 10-3-301- 303 4th Floor, Serene Heights, Humayun Nagar, Masab Tank, Hyderabad- 500028 The Assistant commissioner of central Tax, Audit circle Vlll, Audit-l Commissionerate, H.No.3-4-'1 18/1 , NR, .1St Floor, Elegant Maharaja' Ramanthapur, Hyderabad- 50001 3. The Branch [vtanager, Axis Bank, NIFT Campus, Hitech City, Opp Cyber Towers, I\tladhapur-50008'1 TheSecretary,Unionoflndia,MinistryofFinance,NorthBlock'NewDelhi- '1 10 001 One CC to M/s P V PRASAD ASSOCIATES, Advocate [OPUC] One cC to SRI DOMINIC FERNANDES (SENIOR STANDING COUNSEL FOR CBIC) Advocate [OPUC] ONC CC tO SRI N BI-iUJANGA RAO, DEPUTY SOLICITOR GENERAL OF lNDlA, Advocate (OPUC) Two CD CoPies AS //// To 1 2 I SA BS J 4 R 6 7 8 Pfic.

HIGH COURT DATED: 08/06/2026 ORDER WP.No.9326 o12026 DISPOSING OF THE W'P WITHOUT COSTS. ..04. -:, * 'r'11Ytl'' ft,ru,^' iot* -tHE S iljl. 2026

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.