Parmeshwari Enterprises vs. The Assistant Commissioner Of State Tax

WP/18955/2025HC TelanganaGSTCNR HBHC01037023202522 January 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN5 pages

For Respondent: SRI SWAROOP OORILLA, SPECIAL GOVT, PLEADER FOR STATE TAX

AI SummaryRemanded

Facts

Parmeshwari Enterprises filed a writ petition before the Telangana High Court challenging an order passed by the Assistant Commissioner of State Tax under Section 73 of the CGST Act, dated August 19, 2024, and a preceding Show Cause Notice dated May 30, 2024. These actions pertained to the financial year 2019-20 and involved a disputed demand of Rs. 2,78,739/-. The petitioner argued that the order and notice were void, illegal, arbitrary, violative of constitutional provisions, and principles of natural justice. Subsequently, the respondents submitted an order dated November 24, 2025, passed under Section 161 of the Telangana Goods and Services Tax Act, 2017, which rectified the original order. This rectification reduced the net demand to Nil.

Held

The High Court noted that the original order-in-original dated August 19, 2024, and the summary of the order of the same date, which were impugned in the writ petition, had been rectified by an order dated November 24, 2025, passed under Section 161 of the Telangana Goods and Services Tax Act, 2017. This rectification order reduced the net demand from Rs. 2,78,739/- to Nil. The learned counsel for the petitioner submitted that the grievance of the petitioner had been redressed due to this rectification. Consequently, the Court found no further purpose in continuing the writ petition. The Court disposed of the writ petition as infructuous, stating that there would be no order as to costs. Any pending miscellaneous applications were also closed.

Key Issues

1. Whether the order passed by the Assistant Commissioner of State Tax under Section 73 of the CGST Act, dated August 19, 2024, and the Show Cause Notice dated May 30, 2024, for the financial year 2019-20, are void, illegal, arbitrary, and violative of Articles 14, 19, 21, and 265 of the Constitution of India, as well as principles of natural justice and without authority of law? Petitioner's Contention: The petitioner argued that the impugned order and show cause notice were fundamentally flawed and legally unsustainable on multiple grounds, including violations of constitutional rights and natural justice. They sought to have these declared void and set aside. Respondents' Contention: The respondents did not explicitly argue against the petitioner's claims in the initial petition. However, they later submitted an order of rectification passed under Section 161 of the Telangana Goods and Services Tax Act, 2017, which significantly altered the demand, effectively addressing the petitioner's grievance.

Sections Cited

Section 73, Section 161

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3488 I IN THE HIGH COURT FORTHE STATE OF TELANGANA AT HYDE (Special Original Jurisdiction) THURSDAY, THE TWENTY SECOND DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN P Between: PARMESHWARI ENTERPRISES, Plot No.269, Sri Krupa Market, Malakpet, Hyderabad, Telangana, 500036 Represented by its Partner Sanjay Kumar Singhal, S/O. Banwarilal Narsinghpuria Aged about 55 Years, occ. Business Fl/O. Plot No 1 15 Keerthi Richmond Villas, Sun City, Bandlaguda, Rajendranagar, K.v. Rangareddy, Don tsosco Nagar, Telangana - 500086 ...PETITIONER AND '1. The Assistant Commissioner of State Tax, Charminar Division, Malakpet - ll Circle, Telangana. 2. Commissioner of Commercial Taxes, State of Telangana, C.T. Complex, Nampally, Hyderabad- 500001 . 3. State of Telangana, Through Principal Secretary to Government Revenue Department (Commercial Tax), Hyderabad, Telangana. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit 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 order passed by the Respondent No. 1 u/s. 73 of the CGST Act dated 19-08-2024 in Form GST DRC 07 bearing Reference No. 2D360824066537X and also declare the Show Cause Notice in Form No. DRC- 01 bearing Ref No. 2D360524O67095A dated 30-05-2024 passed by the Respondent No. 1 for the Financial year 2019.20 as being void, illegal, arbitrary, violative of Articles 14, 19, 21 and 265 of the Constitution of lndia, violative of OF principles of natural justice, and without authority of law and consequently set aside the same. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay all further action pursuant to the Show Cause Notice in Form No. DRC-Q1 bearing Ref No. 2D360524067095A dated 30-05-2024 and its consequent Order under Form No. DRC-07 bearing Reference No. 2D360524066537X dated 19-08- 2024 dated passed by the Respondent No. 1 for the Financial year 2019-20. Counselfor the Petitioner: SRI NISHANTH RAO KN Counsel for the Respondents: SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STATE TAX

The Court made the following: ORDER

IN THE HIGH COURT FOR TTIE STATE OF TELANGANA AT HYDERABAI) THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND ON'BLE SRI JUSTICE D DATED: 22.01.2026 Between: Panneshwari Enterprises Petitioner AND The Assistant Commissioner of State Tax, Charminar Division, Malakpet - I[ Circle, Telangana & 2 others Respondents ORDER: Heard Mr. Nishanth Rao KN, learned counsel appearing for the petitioner and Mr. Swaroop Oorilla, leamed Special Government Pleader for State Tax appearing for the respondents.

The order-in-original dated 1,9.08.2024 and summary of the order of the same date passed by respondent No.l-Assistant Commissioner of State Tax, Malakpet - II Circle, Hyderabad for the tax period April, 2019 - March, 2020 which are impugned in the writ petition inter alia on a number of grounds, have .M. ) I t I I I i,! tI tt been rectified by the order dated 24.11.2025 passed under Section 161 of the 2 Telangana Goods and Services Tax Act,2017, whereby the net demand has been reduced to Nil from Rs.2,78,739/- as earlier adjudicated. The rectification order has been produced by learned Special Government Pleader for State Tax rvhich is kept on record.

Learned counscl for the petitioner, therefore, submits that the writ petition rnay be disposed of as the grievance of the petitioner has been redressed. 4. [n view of the aforesaid facts and circumstances, the Writ Petition is disposed of as infructuous. However, there shall be no order as to costs. Miscellaneous applica.tions pending, if any, shall stand closed. ASsisYAhY'#H"*Tfl //II 6- SECTION OFFICER To,

The Assistant commissioner of state Tax, charminar Division, Malakpet _ 1 Circle, Telangana

The commissione.r of commerciar raxes, state of rerangana, c.T. comprex, Nampally, Hyderabad- 50000i

The Princioal secletary to Government Revenue Department (commerciar Tax), Hydeiabad, Teii,igini- - -" "

One CC to SRt NTSHANTH RAO KN, Advocate [OPUC] 5. one cc to SRr swARoop ooRrLLA, spECrAL Gow PLEADER FoR STATE TAX IOPUC]

Two CD Copies PMK/PMKw

HIGH COURT DATED i2210112026 ORDER WP.No.18955 of 2025 DISPOSING OF THE WRIT INFRUCTUOUS WITHOUT (, I I t'[:B ?$m * t I ,\ b r\rt'

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.