Keshav Reddy Sweets vs. The Assistant Commissioner Of State Tax
Held
The High Court acknowledged the discrepancy in the demand amount and the imposition of CGST and TGST (likely SGST) not specified in the show cause notice, which violates Section 75(7) of the CGST Act. The Court allowed the petitioner to approach the Proper Officer for rectification of the demand under Section 161 of the CGST Act within two weeks, directing the officer to consider it after a personal hearing within three weeks.
Facts
The petitioner challenged an unsigned order (DRC-07) and a show cause notice (DRC-01) for FY 2018-19, alleging a significant discrepancy between the demand in the SCN (Rs. 1.54 lakhs) and the final order (Rs. 5.53 lakhs). The final order also imposed IGST, SGST, and CGST liabilities not specified in the original show cause notice.
Key Issues
Whether a demand order imposing tax liability in excess of the show cause notice and on grounds not specified in the notice is valid under Section 75(7) of the CGST Act, and if rectification under Section 161 is the appropriate remedy for such discrepancies.
Sections Cited
Section 73, Section 75(7), Section 161
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT FOR THE STATE OF TEI.ANGANA AT HYDERABAD (Special Original Jurisdiction) [ 34881 TUESDAY, THE SEVENTH DAY OF APRIL TWO THOUSAND AND TWENry SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH ANO THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRITPETITION No:1 0287 0F 2026 Between: KESHAV REDDY SWEETS, 1lg0l116, Vinayak Nagar, Madhapur, Hyderabad, Telangana, 50O081 Represented by its partner Kelavanath ihadaJ; R;a;; S/o. Ramachandra Rebdy Aged Sbout 54 years, occ. auitn;ii R/". i6i N^"11q, My Home Navadweepa, Serllingampaily, Rangareddy, Tetangani 500081 AND ...PET!T|ONER
The Assistant Commissioner of State Tax, Madhapur N 3 Circle, Madhapur Division Telangana
Commissioner of CommelclalTaxes, State of Telangana, C.T. Complex, Nampally, Hyderabad- 500001
State of Telangana, Through principal Secretary to Govemment Revenue Department (Commercial Tax), Hyderabad, Telangana. ...ngSporuOeNfS Petition under Afticle 226 of the Constitution of tndia praying that in the circumstances stated in the affljavit filed therewith, the High Court may be pleased to pass a writ order or direction, more particularly in the nature of a writ of mandamus declaring
The judgment continues below.
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