M/S. Rythu Seva Kendram Bairanpally vs. The Superintendent Of Central Tax
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
The Court made the following: ORDER
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAI) THE, HON'BLE TI{E CHIEF JUSTICE SRI APARESH KUMAR SINGH ANI) THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No. 4967 of2026 DATE : 30.03. 6 lJetween: Mis. Rythu Scva Kendram Bairanpally, Rep., by its Proprietor. Mohd. Isrnail Abbas, Siddipet, Telangana. .. Petitioner AND 1'he Superintendent of Central l-ax, Siddipet GS'l ltange. Siddipct. Tclangana and 5 orhers. . .. Respondents DER: Mr. Md. Shabaz. learned counsel for the petitioner. Mr. Dominic Fcrnandes. learned Senior Standing Counsel for Ceniral Board of Indirect Taxes and Customs (CBIC) appears for respondent No.5. 2. The rvrit petition has been preferred with the following prayers: "For all the reasorrs stated in the accompanying aftidavit, it is prayed that this on'ble [{igh Court may be pleased to issue a writ, <.rrder, or direction moro particularly one irr the nature of a Writ of'Mandamus (i) 'fo declare the inrpugned Form ApL 02 dared l3.l1.2025 rejecting the appeal by the 3'd Respondent under the provisions of C(iST/'I'GS'l Act. 20 t 7 as bcing in violation ol. Scction 107(8). 107(l l) and I07( l2) oi GST Act. 2017 being in 'r,iolation ol' Principlcs ol natural justice. without authorittiand
2 juri iction and in violation of Articles la, l9(1Xg) and 265 of the Constitution of lndia, by condoning the delay in filing the appeal, and to consequently set aside any action taken pursuant thereto including recovery proceedings if any and pass such further or other ordcr(s) as this Flon'ble Court may deem fit and proper in the circumstances of the case; and/or (ii) To direct the Respondent No.3 to re-adjudicate tlre appellate proceedings by considering the submissions made by this petitioner; and/or (iii) To declare the irnpugncd Order in Original No.9212024' 25-Adjn (Supdt) GST dated 13.02.2025 and also issued Form DRC 07 vide ref. No. 2D360225053160V dated 20.02.2025 confinning the demand by the l" Respondent under the provisions of CGS1'/'[GST Act, 2017 as being in violation of Section l6(2)(c) and l6(2Xaa) of GST Act, 2017 being in violation of Principles of natural justice, rvithout authority and juri iction and in violation of Articles la. l9(l)(g) and 265 of the Constitution of lndia, aud to consequently set aside any action taken pursuant thereto including recovery proceedings if any and pass such Lurther or other order(s) as this Hon'ble Court may deem fit and proper in the circumstallces of the case; and/or (iu) To declare that provisions of Section l6(2)(c) of CGST Act, 2017 and corresponding -[GST provisions and the rules made thereunder is illegal, arbitrary and inational as well as violative of Article 14, 19 and 265 r/w 300,4 of the Constitution of India (ii) to declare that Petitioner is not liable fbr defaults of their suppliers; in the interest of justice, equity and in accordance with the scheme of the GST Acts and pass such other order or orders as the Hon'ble High Court may deem fit and propcr in the circumstances of the case; (or) in the alternative to pass a writ. order or direction, reading down the relevant extract of Section 16(2Xc) of CGST Act and corresponding TCST Act, 2017."
On 18.02.2026, the matter was adjourned to enable the learned Senior Standing Counsel for CBIC to obtain instructions.
On instructions, learned Senior Standing Counsel for CBIC submits that the appellate authority did not grant any opportunity of hearing as the appeal was time baned.
3
Learned counsel for the petitioner submits that the petitioner has also questioned the vires of Section l6(2)(c) of the Central Goods and Services 'far Act, 2017 (for short, "the Act") in the present writ petition. Therefore, the writ petition may be entertained on the question of vires also.
Horvever, we find that the petitioner amongst the number of reliefs sought quashing of the rejection of'the appeal in Form ApL-02, dated 13.11.2025 by respondent No.3 as being in violation of Section 107(8), 107(ll) and 107(12) of rhe Acr, and also in violarion of principles of natural justice. Petitioner has not approached this Court upon issuance of the show cause notice or after passing the order-in- original assailing the vires of Secrion t6(2)(c) and I6(2)(aa) of rhe Acr. Petitioner has also relied upon the order passed by this court in w.P.No.34650 of 2025, wherein, in sirnilar circumstances, the matter \\'as remanded to the appellate authority to pass fresh order in accordance rvith law after granting an opportunity of hearing to the petitioner. 7. we are therefore of the view that the question of vires of Section l6(2)(c) and l6(2)(aa) of rhe Acr can be raised after exhausting the appeal remedy if the petitioner is aggrieved. Therefore, the impugned order in appeal dated 13.11.2025 is set aside. The matter is remitted to the appellate authoritv to pass a fiesh order in accordance with larv after t \
lli 4 granting opportunity of hearing to the petitioner. Needless to say that if the petitioner is aggrieved rvith the order passed in appeal, it is at liberty to avail appropriate remedy in law and also raise the issue of vires of t""t':#(,?Xc).ana tu,'],,ti] of the Act in a writ proceedings' 8.,. Learned counsel for the petitioner submits that despite filing of t, an appeal before respondent No.3 by making statutory pre-deposit on 21.09.2025, the attachment gf jts bank account dated 03.09.2025 has not been revoked. tt is therefore, observed that during pendency of the appeal on remand, if the petitioner has already paid the pre-deposit, there shall be a stay of the order-in-originaltill disposal of the appeal.
With the above observations. the writ petition is disposed of. There shall be no order as to costs. Miscellaneous applications, if any pending, shallstand closed. A.SREENIVASA REDDY ASSISTANT REGISTRAR /// sEcrloN oFFlcER To 1. The Superintendent of central Tax, Siddi[T:IGST Range, 4th Floor, H'No' 1B- i9-r5, 6iR Circle, Siddipet, Telangana.- 5021.03
The Assistant Commissioner of C""ntr"t Tax, Medchal Division, H-No. 8-2- titg,+tn floor, SriAOltVa Towers, Sri Sai Enclave, Old Bowenpally, Secunderabad- 50001 1
Joint Commfiioner of Central Tax (Appeals-ll), 7th Floor, GST Bhavan, Basheerbagh, Hyderabad- 500 004
The Secretiry, tinion of lndia, Ministry of Finance, North Block, New Delhi- 1 10 001
Central Board of lndirect Taxes and Customs, GST Policy Wing, New Delhi Rep by its Commissioner
The Manager, State Bank of lndia, Dhoolimitta Branch, 232C-CJR, Maddur Mandal, Dhoolmitta, Telangana 506367
One CC to SRI MD.SHABAZ, Advocate [OPUC]
One CC to SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF rNDrA [OPUC]
One CC to SRI DOMINIC FERNANDES, SENIOR SC FOR CBIC [OPUC] 10.Two CD Copies iit \qr
t HIGH COURT DATED:3010312 26 WP.No.4967 of 2026 ^'$ .-\ Lvt \d- er\ o 2 3 qPtt rli26 HES fA 't ( t 2 (;l )r, 5..1 a-/..' .a/ * E Dfrr..'-'"-'' S S U trt Lr G c OF THE WRIT PETITION OSTS 0 o I -., &\,'
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.