M/S. Udeva Preci Steel Products Mfg. Co. vs. The Superintendent Of Central Tax And Central Excise

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WP/9193/2026HC TelanganaGSTCNR HBHC01019224202601 April 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN7 pages
For Petitioner: SRI SINGAM SRINIVASA RAOFor Respondent: SRI N.BHUJANGA RAO, DEPUW, SOLICITOR GENERAL OF INDIA

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Cause title — parties, addresses and appearances
t I ! t i I I i I i 2 I II I t IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIRST DAY OF APRIL TWO THOUSAND AND TWENry SIX [ 34881 PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDTN WRIT PETITION NO: 9193 OF 2026 Between: ItUs. Udeva Preci Stegl productslvtfg. Co., 15E-F1, SVCIE, lDA, Jeedimefla, Itydqq!a!-S00055. Rep. by tts Man-aging partner, ru. Venkii'ia-nii";'H;;, S/o. N.V.Raghava Rao AND ...PET|T!ONER '1. The guperintendent of centrar rax and centrar Excise. eutbullaour Ranoe- *dlT"!la. olrision,. Medcha I Com missio nerate, H.No. B-2_ZT I 3,' Aditya "' _ I owers, Sri Sai Enclave, Old Bowenpally, Secunderabad-sooo j l . 2. The Joint commissioner o GST and budto.s, Meocnir boir-riissionerate, 3rd _ Floor, Medchat GST Bhavan, 11-4-69t8, Lakdikaput, nvOeraOiO-tOtj00i.' - ' 3. The Union of lndia, Ministry of Finance, Departmbnt of h"renr", nep Ui its Secretary, New Delhi. ...RESPONDENTS Petition under Articre 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an appropriate writ, direction or order more particularly in the nature of writ of Mandamus declaring the summary of the order in Form GST DRc-o7, dated 2811212023 arong with order-in-originat No.110/2023-24-Adjn (Supdt.) GST, dated OBl12t2O23 in DtN. 2O2312S6Y?O20O0OOB86, and the rectification order No. 04r2o2s-26-Adjn (Supdt.) GST. dated 28.01.2026, both passed by the 1st respondent properly considering the objections of the petitioner and without verifying the account books and tax invoices as illegal, arbitrary, against the provisions of the GGST Act and against the principles of natural justice, apart from being viotative of Articles 14, 19(1Xg), 21 and 265 of the constitution of lndia and consequently set aside the same and pass such other order or orders as it deems fit and proper in the circumstances of the case. lA NO: 1 OF 2026 Petition under Section I 51 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 all further proceedings, including recovery pursuant to the impugned Summary of the Order daled 2811212023 in Form GST DRC-07 along with Order- in-Original No. 110/2023-24-Adjn (Supdt.) cST, dated 0811212023 in DtN. 20231256YPO200000886, passed by the 1st Respondent for the tax period Juty, 2O17 to March, 2018, pending disposal of the Writ Petition. Counsel for the Petitioner: SRI SINGAM SRINIVASA RAO Counsel for the Respondent Nos.{ & 2: SRI DOMINIC FERNANDES, SENIOR STANDING COUNSEL FOR CBIC Counsel for the Respondent No.3: SRI N.BHUJANGA RAO, DEPUW SOLICITOR GENERAL OF INDIA

The Court made the following: ORDER

IN THE IIIGH COURT FOR THE STATE OF TELANGANA AT ITYDERABAD THEHoN'BLE TIIE CHIEF JUSTICE SRI APARESH KUMAR SINGII I I I I I AND TIrT'. HON'BLE SRI JUSTICE G.M.MOHIUDDIN T PETITION No.9193 of 2026 WRI DATED: 01.04.2026 Between: IWs. Udeva Preci Steel Products Mft. Co., Rep., by its Managing Partner, N. Venkata Ramana Rao, Hyderabad. .. Petitioner AND The Superintendent of Central Tax and Central Excise, Old Bowenpally, Secunderabad and 2 others. ... Respondents ORDER: Heard Sri Singam Srinivasa Rao, leamed counsel for the petitioner and Mr. Dominic Fernandes, leamed Senior Standing Counsel lor Central Board of Indirect Taxes and Customs (CBIC) appears for respondent Nos. 1 and 2. 2. Petitioner has laid challenge to the order-in-original dated 08.12.2023 and summery of the order in Form GST DRC-07 dated 28.12.2023 on the ground that it was passed without considering his reply dated 19.08.2023 and without verifying the records, in violation ol principles of natural justice and the I I procedure prescribed under the Central Goods and Services Tax Act, 20 l7 (for 2 short, "the CGST Act"). Petitioner immediately thereafter filed a rectification application on 07.02.2024, which has also been rejected by order dated 28.01.2026 also impugned in the writ petition.

3.

According to the petitioner, the adjudication proceedings relates to the period tiom luly,2017 to March, 2018 where due to lack of clarity some suppliers had issued invoices and filed retums using GSTIN 32ZA resulting in mismatch betu,een the GSTR-3B and GSTR-2A/28. The supplier made certain amendnrents in the GST portal in GSTIN applied for 2017-18. However, the respondcnt issued Form GST DRC-01A proposing demand of Rs. I5,37,411:74 alleging excess ITC for 2017-18. Despite submission of a reply and explaining the rnisruatch due to the dual GSTIN issue and suppliers enors requiring veriflcation of amended invoices, the proper officer conducted the adjudication proceedings and passed the order-in-original holding him liable to pay tax, interest and penalty. It is further submitted that the proper officer has not applied his mind and made the necessary corrections even on a rectification applicarion rnade as would appear from a perusal of the order dated 28.01.2026 speciallr paras 9 to 13. Therefore, the petitioner has assailed both the proceedings -1. Lcamed counsel for the petitioner has also relied upon a decision of the J Allahabad High Court in M/s. Prakash Medical Stores vs. Union of India and i I ir I i I I I I I )

3 llt 3 othersr' wherein the period spent in pursuing the rectification application has been excluded by relying upon Section 14 of the Limitation Act, 1963 for the purposes of preferring an appeal. Leamed counsel for the petitioner has therefore sought to assail the impugred orders on merits as well.

5.

Leamed Senior Standing counser for GBIC submits that the repry referred to by the petitioner is to Form GST DRC-OIA, the intimation prior ro issuance '1 of show cause notice. He has however not submitted any repry to the show cause notice which led the proper officer to pass the irnpugned order-in-originar. However' he does not dispute that since the rectification application was pending all along for about two years, the benefit of Section l4 would enure the petitioner to prefer an appeal to the impugned order_in_original. 6' Having regard to the facts and circumstanccs noted above and that the petitioner seeks to assail the findings of the proper of'ficcr on merits as we , we are ol-the view that the petitioner may approach the appc ate authoritl,.taking a such grounds of law and fact. Ifsuch an appear is pref'erred lvith statutory pre- deposit and delay condonation apprication, the appelratc authority wourd consider the question of delay taking into accornt the pcriod spent during pendency of the rectification application and arso the pcriod spent in pursuing thc rvrir remedy before this court. If the apperate authority is satisfred rvith the explanation for delay' he shall proceed [o dccicrc the appear on .rerits in lVrrr Tax No.5865 of2025, dt: t2.12.2025

4 accordance with law. Let it be made clear that we have not made any comments on the nlerits of the case. 7 Accordingly, the writ petition is disposed of. There shall be no order as to N4iscellaneous apnlications, if any pending, shall stand closed. A.H.S.GOWRI SHANKAR ASS STANT REGIS //// ECTION OFFICER

1.

The Superintendent of Central Tax and Central utbullapur Range, Jeedimetla Division Medchal Commissionerate ,H. 2-77t3, Aditya Towers. Sri Sai Enclave, Old Bowenpal ly, Secundera -50001't. The Joint Commis sioner o GST Medchal Commissio nerate,3rd Floor, Medchat GST Bhavan 11 and Customs, -4-69/8, Lakdikapul, Hyderabad-500004 The Secreta ry,U nion of lndia, Ministry of Finahce, Department of Revenue, New Delhi COSTS To 7 PSK. TKS +$J- 2 3 4 6 9n" 99 to sRt STNGAM sR!N!_v4S.4_l_RAo, Advocate tOpUcI 9lg c_9 tS sRr DoMtNtc FERNANDES, SE'ruioiGiAilorru<i courvser FOR CBIC IOPUCi 9.19 g-c^a sRr N TiHUJANGA RAO, DEPUTY SOLtCtToR GENERAL OF rNDtA IOPUC] Two CD Copres

JH GOURT JATED:01 10412026 ORDER WP.No.9193 of 2026 oIT t 0t nw ZW i Hitlj tw,CHEO * o ((r e L,ta t DISPOSING OF THE WRIT PETITION WITHOUT COSTS /1/N 6) i \u\ rq

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.