Dyentra Tech Controls Private Limited vs. The Assistant Commissioner Of State Tax

The petitioner has assailed the Summary of show cause notice dated 06.11 .2023 issued in Form GST DRC-01 for the Assessment Year 2020-21 and the order passed under Section 73 of the Telangana Goods and Services Tax (TGSTyCentral , I Goods and Services Tax (CGST) Act, 201r.7, and the summary of the order passed in Form GST DRC-07 dated 09.05.2024. -:.\ HCJ (AI{rS, J) & GMM, J

One of the main grounds of challenge is that the impul3ned proceedings cover the tax period 2021-22 as evident from the allegations made in the show cause noticc but in the capticrn, it is wrongly shown as Assessment Year 2020-21 . The other ground taken by the petitioner is that for the same year, best judgment assessment under Section 62 of CGST Act, 2011, has been carried out by the same Officer due to non- filing of return for October,2021. The petitioner has taken a plea that for the satne period, two such orders by the same Office,r cannot be sustained in the eye of law.

Counter-affidavit and rejoinder affidavit had been filed by the parties.

Learned counsel for the parties have drawn the attention of this Court to the relevant documents on record. It is not in disput,: that the best .judgment assessment order was passed due to non-filing of returns for October,202l, by the assessee. That order is not under challenge. The Order-In-Original under 0 I Sectio;r 73 of TGST/CGST Act, 2017, is challenged on HCJ (AKrS, J) & GMM, J account of alleged duplicity of proceedings for the same period i.e., best judgment assessment order for October,202l.

From the pleadings on record, the enclosed documents, and the stand of the respondents, it is evident that the proceedings under Section 73 of TGST/CGST Act, 2011, relate to the non-payment of a substantial amount of tax against the taxable value of Rs.1.5 crores as found on verification of e-Way Bill dated 29.10.2021 . This was an intra- state movement of the goods. It is also not in dispute that the best judgment assessment order for the period October, 2021, does not impose any tax liability on account of e-Way Bill. Section 73 of TGST/CGST Act,2017, allows the proper officer to initiate proceedings for determination of tax not paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, where it appears to the proper officer that such tax has not been paid. As such, passing of the best 3 ,..:. )'\ \ ! I judgment assessment order in the absence of a retum for the 1 4 t{CJ (AKrS, W.P.No.l & GMlvl. J 83 of2025 4". J) 92 aforesaid period could not take note of the transaction Llnder e-Way Rill dated which was rnade the subject matter of the proc()edings under Section 73 of TGST/CGST Act, 2017 Hou,ever, an error has crept in the adjudication proceedings in respect of the reference of the Assessment Year as 2020-21 insterrd of 2021-22. Such an error ought to have been corrected by the proper officer under Section 161 of TGST/CGST' Act, 2017 Such correction can be made suo motlr by the proper olficcr. 1'hc petitioner wilI have the opportunity to pref'er ari appeal after such rectification is made in the show cause notice and thc Ordcr-ln-Original taking alI grounds of facts and lar,v whiclr arc available to it. The period for filing appeal would commcnce only after rectification of the show cause notice and tl're Order-In-Original by the proper officer under Section l6l of TGST/CGST Act, 2017 . With the aforesaid observations and directions, the instanl Writ Petition is disposed of. There shall be no order as I I to costs. Let it be made clear that we have not gone into the /// .M.OSMAN ALI BAIG ASSISTANT REGISTRAR ,/G HCJ (AKrS, J) & GMM, J lV.P.No.19283 of 2025 SECTION OFFICER 5 merits of the case of the parties apart from what has been observed hereinabove. Miscellaneous applications, if any pending, shall stand closed. I .,To,