Judgment
[ 34881 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) THURSDAY, THE TWENTY FIFTH DAY OF SEPTEIVIBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NOs:28391 & 28392OF 2025 W.P.No.2839'l OF 2025 Between:
I\/is. Ankit tr/arketing 28391, 36ADOPA7925R2ZS -Rep by its Pro.prietor, Aged 59 vears. Kiran Devi, W/o. Ashok Kumar Agarwal, Occ. Business,0/o- House No. 1- 195. Ground Floor, Pipeline Road, Faihenagar, Hyderabad, Ivledchal-malkajgiri.
Telangana - 500 018.
CT is amended as per C.O.dt.251912025 vide lA No.2/25.
...PETtTIONER AND 1 The Additional Commissioner, Medchal Commissionerate, tvledchal GST Bhavan Lakdikapool, Hyderabad, Telangana.
The Assistant Commissioner of Central Tax, Jeedimetla GST Division, Hyderabad, Telangana The Commissioner of Central tax, Central Excise and Service Tax, IVledchal Commissionerate, Lakdikapool, Hyderabad-500004.
The Union of lndia, Rep. by its Secretary, IVinistry of Finance, North Block, New Delhi - I 10 001 .
The State of Telangana, Rep. by the Principal Secretary. to G.overnment, Revenue (CT-ll) Djpartment, Teiangana Secretariat Building, Hyderabad, Telangana.
...RESPONDENTS Petition under Article 226 of Ihe constitution of tndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ, order, or direction more particularly one in the nature of a writ of mandamus declaring the action of the respondents in passing the impugned proceedings in Order-in-Original No. 19/ 2025-ADJN (GST) dated 03- 2 3 4 :
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i I t 1 i i i Ii I I il ' it I ,
i I I I I f i I I 02-2025 imposing the demand of GST tax, interest and 1r::nalties for the period July 2017 to April 2019 on the ground of evasion and ,:uitpression of turnover through katcha transactions and non-issuance of prop,,r invoices and further consequential orders vide Ref No. 2D36O225010852P rlz ed 05-02-2025 being illegal, irregular and rn violation of principles of natural jtrs ice and consequently set-aside/quash the impugned proceedings on the grorr,l of non issuance of show cause notice under sec 73174 of CGST Act 2C1 z before passing the impugned unsigned orders and further grant appropriate -r, lief for slaying all the recovery actions.
lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the () 'cumstances stated in the affidavit filed in support of the petition, the High Court rr ay be pleased place it to grant stay of collection of the total dispute tax of F s .3,84,8481- IGST, Rs.
43,O4,2341- CGST, Rs. 43,04,2341- SGST and along with :rr, ralty of Rs 3,84,8481 IGST, Rs. 43,O4,2341- CGST, Rs. 43,04,234l- SGST.
Counsel for the Petitioner : SRI S.VIPLAV SIMHA REDDY Counsel forthe Respondent No.1to3:SRl DOMINIC FERNANDI:ii, Sr.SC FOR CBIC counser ror the Res pondent No'4 i"lhffi si[.,,#f t Ltpi^.
Counsel for the Respondent No.5 :
W.P.No.28392 OF 2025 Between:
M/s. Brilwasr lndustries, (368NLPA0543D|ZJ) -Rep by its Prr,p,'ietor, Ankit Agarwal, S/ o. Ashok Kumar Aganaral, age 59 Year, Occ. Business, C,t; Plot No. 5-55/26lNR, Ramreddy Nagar, Quthbullapur, Jeedimetla, l\/edchal - Mallrajgiri, Telangana-S00 055.
..,PETITIONER AND 1 2 The Additional Commissioner, l\,4edchal Commissr:rr erate, l\4edchal GST Bhavan Lakdikapool, Hyderabad, Telangana- The Assistant Commtssioner of Central Tax, Jeec metla GST Division, Hyderabad, Telangana.
The Commissioner of Central tax, Central Excise and liervice Tax, Medchal Commissionerate, Lakdikapool, Hyderabad-500004.
i t
4. The Union of lndia, Rep. by its Secretary, Ministry of Finance, North Block, New Delhi - 1 10 001 .
5. The State of Telangana, Rep. by the Principal Secretary to Government, Revenue (CT-ll) Department, Telangana Secretariat Building, 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 issue a writ, order, or direction more particularly one in the nature of a writ of mandamus declaring the action of the respondents in passing the impugned proceedings in Order-in-Original No. 19/ 202S-ADJN (GST) dated 03-02-2025 imposing the demand of GST tax, interest and penalties for the period July 2017 Io April 2019 on the ground of evasion and suppression of turnover through katcha transactions and non-issuance of proper invoices and further the order's vide Ref No. 2D3602250053500 dated 03-02-2025 being illegal, irregular and in violation of principles of natural .justice and consequently set-aside/quash the impugned proceedings on the ground of non issuance of show cause notice under sec 73174 of CGST Acl,2017 before passing the impugned unsigned orders and further grant appropriate relief for staying all the recovery actions.
lA NO: 1 OF 2025 Petition under Section 151 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 collection of the total dispute tax of Rs.95,98,419/- IGST, Rs. 60,91,654/- CGST, Rs. 60,91,654/- SGST and along with penalty of Rs 93,98,419/- IGST, Rs.
60,91,654/- CGST, Rs. 60,9 1,654/- SGST.
Counsel for the Petitioner : SRI S.VIPLAV SIMHA REDDY Counsel for the Respondent No.1to3:SRl DOMINIC FERNANDES, Sr.SC FOR CBIC counser for the Respondent No.4 , :"TiXH,^.T.E[i:?NGA RAo, .
DEPUTY.SOLICITOR GENERAL Counsel for the Respondent No.5 1 " The Court made the following: COMMON ORDER
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S (-ounscl [rrr Ccntral Board of Indilect l'axc,r :rncl (]usroms (CllI() appcaring for respondenrs No. I t() .j; ancl i\Ir.
13 llLrkhcrjee, learnccl counscl rr.|rcs..nriru TFIE HON,BLE THE CHIEF II] TICE SRI AI'ARESII N{AR SIN NIr. \.Rhujanga Ro, learned Dcputv Soliciror ( ], ncr:rl oi lnciia for rcspondcnr No.4 2 IlcFcrencc is made ro rhe orclcr datcd 19 (:).2025. rvhich rcacl as undel "T'l-rcte rs a iundamental inFrnnitr. in tl-rc clcsc - r:iot of thc pcutioncr rn thc caltse rltlc, s,hcthcr l.(,r rri()rt(.r. it-r \\'PNcr28391 of 2025 beins a privatc limr c I companl.
shoulcl be l-cprcscntcd b1 r pr-, rprirtt)r 1s nrrnc -j ; ltcrcrrr ard also rvhcthe r the pctiuoncr in W.P.No.28 j!'l of 202-5, dcsclbcd ls an industry, is a prr ,pr.ietrrr; firrr] ( ,r ir c( )ntpan)r said to be reprcsentcd b1, a proprictor. 'I he ,:..r.rifir_rrc of registrauon Of cithcr of the sc t\vo pe tiUoncrs is -Lr ,r artr.tcxccl_ AND THE HON'BLE SRI IUSTICE G.M.MOHI', 1)DI\ Writ Petition Nos.28391 & 28392 of 20tl!
Comrnon OrclCf I learci \Ir S.\riplar. Simha Rec{dt-, lcaLncr. :orurscl ir.rr thc pctitroncrs; Nfu'. Dominic ficr:nandes, learnccl )..:rior Standrng I i I l I I I
2 On thc other l-rand, lcarncd counsel For thc pctitloncrs has contencled that bv a shr-xv cause noticc issucd upon Asl-rok l{umat Agarrval, procccdings unclcr Section 73 har.e bccn conductcd and concltrclccl bv passing the impugncd ordct in otisioal clatcd 03 02.2025, against M/s.Ankith Inclustrics, \[/s.Ankit Nlarketing and M/s.Brijwasi Inclustrics togethcr.
Learncd counsc[ ftrr thc peuttoncrs also prays, during thc coursc of sr,rbmlssior-r, thet hc mav bc granted libcrn' to prcfer an appcal rtrrinst thc rmpugned order in- originel Llaled {l t.02 1015.
I lorvcr.er, in ordet' tr.r tnakc things corrcct in thc pleadings and descriptron of the parues with supporting documents, onc rvcek ume is alkxr"ed.
l-ist both thcse mattcrs ctn 25.09.2025."
Peurioners have flled an amcndment to [hc cause tltle explaining that the pcuttoners rn both the writ pctitlons J afe proprietary concerlls rcPres en icd bt' diffcfen t proprlc tors 4.
Learned counscl for the Petitloncr submits that liberty rnay be granted to the tespective pe tiuoners to aPproach the appellate authoriq' against the impugncd order-in-original dared 03.02.2025.
3 5.
Learned Senior Standing Counscl [or CBt(. subnits tl-rar the pcritroncls har-c approached this Court ai.r sorrc dciav I Iou,crcr', if rirc Pctitiollers are interesLecl in aPlr:oaclrrng thc appcll:rtc authont\., this Court ma\r pass appropril: c order 6. In rhe afbrcsaid facts and ctrcurnstanr:.rs, since thc petidoners an: u.illing to ar.ail the remecir, e[ 11 .,peal rvithour makrug an\ contlnents on the mcrits of the casr: ,rl tlrc parties, thc instant \\'rir Pcutions are disposed oI witlr iibertr, to thcr pctitiorlcrs to rirproach the appellatc aurh()rir\'.,i.ririn r periocl I t thc petitioners prefer such appeal w-ithrn tl-re afolcsaid the appellate authority rvould consider. r,he samc n It rvoulcl bc opcn ior thc pctitioners [() r:] :.(r ali grouncls as ma\- be available to them o11 facts and on 1au., ;n the memo Accor:clinglr,, rhc instant Writ Petitions are,.l: ,l)osecl oI of tu-o w'ccks periocl, accotclance u-irh lerv.
8 of appcal 9 !
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4 As a sequel, misceliancous Pelitions, pcndtrg i[ any, stalld ckrsecl. Horvcvet, therc shall be no order as to costs' SD/.P. PONNA KRISHNA ISTANT REGISTRAR SECTION OFFICER ISSIO rate, lVledchal GST To, IA //TRUE COPYil 1. The Additional Commissioner. Medchal Comm Bhavan Lakdikapool, Hyderabad, Tetangana.
2. The Assistant Commissioner of Central Tax, Jeedimetta GST Division, Hyderabad, Telangana 3. The Commissioner of Central lax, Central Excise and Service Tax, IVledchal Commissionerate, Lakdikapool, Hyderabad-500004.
4 The Secretary, Union of lndia, Ivlinistry of Finance, North Block, New Delhi - 1 10 00'1 .
5. The Principal Secretary_to Government, Revenue (CT-ll) Department, State of Telangana, Telangana Secretariat Building. Hyderbbad. Tetdngana.
6. One CC to SRI S.VIPLAV SIIVHA REDDY, Advocate. tOpUCl 7. One CC to SRI DOI\,4|NlC FERNANDES, (senior standing counset for CBIC) [oPUC] 8. One CC to SRI N.BHUJANGA RAO, Additional Solicitor Generat of lndia, High Court for the State of Telangana at Hyderabad. [OPUC] 9. Two CD Copies.
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HIGH COURT DATED:2510912025 - --:
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Jt * SPAl' COMMON ORDER WP.No.28391 & 28392 of 2025 DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS \Ll \l \-( L) i I t , l i