M/S Narendra Marketing vs. The Superintendent Of Central Tax

WP/28056/2025HC TelanganaGSTCNR HBHC01054414202519 September 2025Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN8 pages

For Petitioner: SRI SRINARAYAN TOSHNTWAL, SENTOR COUNSEL, FOR SRI MAYANK SAVLAFor Respondent: SRI D. RAGHAVENDAR RAO, SENIOR S.C. FOR CENTRAL BOARD OF INDIRECT TAXES, AND CUSTOMS

AI SummaryRemanded

Facts

The petitioner, son of the deceased proprietor of M/s. Narendra Marketing, sought to challenge a show cause notice dated 05.12.2023, an order-in-original dated 19.03.2024 passed under Section 73 of the CGST Act for the tax period 2018-19, and a garnishee notice dated 15.10.2024. The petitioner had taken over the business operations after his father's demise on 12.10.2024, which was after the order-in-original was passed. The petitioner intended to file an appeal against the order-in-original concerning M/s. Narendra Marketing. The garnishee notice, not served on the petitioner, attached the bank account and fixed deposits of the petitioner. The petitioner had already obtained a fresh GST registration.

Held

The Court disposed of the writ petition without entering into the merits of the case. The petitioner was granted liberty to file an appeal within a period of three weeks from the date of the order. The petitioner was directed to approach the appellate authority, either to prefer the appeal manually or to be provided with user ID and password for electronic filing. The petitioner was permitted to take all grounds, on law and in fact, in such appeal, which would be considered by the appellate authority in accordance with law. The Court noted that the petitioner had already obtained a fresh registration under the CGST Act. Miscellaneous petitions, if any, were also disposed of.

Key Issues

1. Whether the show cause notice, order-in-original, and garnishee notice are without authority of law, arbitrary, and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India, given that the petitioner took over the business after the order-in-original was passed and the garnishee notice was not served on him? Petitioner's contention: The petitioner argued that the impugned notices and order were issued without authority and were arbitrary, violating constitutional rights, as they imposed liability on him for actions taken before he assumed control of the business and that the garnishee notice was not served. The petitioner relied on his constitutional rights under Articles 14, 19(1)(g), and 265. Revenue's contention: The Senior Standing Counsel for the Central Board of Indirect Taxes and Customs, on instructions, submitted that in the peculiar circumstances, the petitioner may be allowed to seek fresh registration and file an appeal within a stipulated period.

Sections Cited

Section 73

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3488 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINETEENTH DAY OF SEPTEIUBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HON'BLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 28056 OF 2025 Between: lt4/s- Narendra [\rlarketing, Rlo. 19121226, Bahadurpura Flyover Hyderabad, Telangana-500064 Represented by its Proprietor, IVr. Irr'lokshit Mehta, S/o Late Mr. Narendar [\/ehta ...PETITIONER AND 1 2 3 4 The Superintendent of Central Tax Goshamahal, GST Range Begumbazar GST Division, 2no Floors, Amiso Plaza, H.No.8-2-677lP, Road No. 12, Banjara Hills, Hyderabad - 500034 The Superintendent lvlehdipatnam-1, Charminar, Telangana 8th Floor, Gaganvihar Building, Nampally, Hyderabad-500 00'1 The Branch N,4anager, lClCl Bank, Koti Branch, Ambica lcon, 4-5-962,Opp. Arya Samaj lvlandir, Badichowdi. Koti, Hyderabad-So0 027 State of Telangana, Represented by its Principal Secretary to Government, Revenue (CT-ll) Department. Secretarrat, Hyderabad ....RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of lVandamus or any other appropriate Wrlt, Order or D irectio n A. the Show cause notice and Summary of show cause notice in Form GST DRC-O1 , dated 'l 7.'l 1 .2023 and 05.12.2023, respectively, issued by the 1't Reipondent, under the provisions of the Telangana Goods And Services Tax Act 2017. for the tax period 2018 - 19, as uploaded in the GST web' portal, B. the order unde:r Section 73 of the Goods & Services Tax Act, 2011', dated 19.03.2024. passed by the 'l't Respondent, and the Summary of th: Order in Form GST )RC-O7, dated 04.05.2024, passed by tre 2nd Respondent, under the provisions of the Telangana Goods and Services fax Acl. 2017, for the tax period 2018 - 19, as uploaded in the GST web portal, C. the Notice, vide GST DRC - 13, dated 15.10.2024, (not served on the Petitioner), issued by the 1't Respondent to the 3" Respondent, altaching the bank account and fixed deposits of the Petitioner. are issued without any authority of law, and are arbilrary, apart frorn being violated of articles 1a, 19(1)(g) and 265 of the ConstitLrtion of lndia, in the interests of justice. lA NO: 1 OF 2025 Petition uncer Section 151 CPC prayrng that in the cri-cumstances stated in the affidavit filed in support of the petition, the High Court may be ple,rsed to suspend the Notice, vide GST DRC - 13, dated 15.10.2024 (not served on the Petitioner), issued b7 the 1't Respondent to the 3'c Respondent, attaching the bank account and fixed deposits of the Petitioner. pending d sposal of the above Writ Petition. lA NO: 2 OF 2025 Petition under Section 15'1 CPC praying that in the c rcumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further procet:dings, including any recovery, pursuan: to the order u/s 73 of Goods and Services Tax Act, 2017, dated 19.03.2024, & Summary of the Order in Form GST DRC-07, dated 04.05.2024, passed by the .l.tRespondent and 2nd Respondent, respectively, under the provisions of the Telangana Goods & Services Tax Act, 2017, tor the tax period 2O18 - lg, as uploaded in the GST web portal, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI SRINARAYAN TOSHNTWAL, SENTOR COUNSEL FOR SRI MAYANK SAVLA Counsel for the Respondents No.1 & 2: SRI D. RAGHAVENDAR RAO, SENIOR S.C. FOR CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS Counsel forthe Respondent No.3: -- Counsel for the Respondent No.4: GP FOR COMMERCIAL TAXES

The Court made the following: ORDER l

THE HON'BLE THE CHIEFJUSTICE SRI APARESH KUMAR SINC;H AND TTI}1 HON'BLE SRI JUSTICE G.M.MOHIUD.DIN Writ Petrtlon No.28056 of 2025 Order Hearcl l{r. Srinarayan Toshniwal, Iearned Scnior Cor.rnsel appearing [or. NIr. Mayank Savla, learned counscl tbr rhc pcdu()ner and Mr. D.Raghavendar Rao, leanrcd Scir.or Standing Counsel for Central Board of Indt-ecr f'arcs and (-ustoms apprcaring for respondents No.1 and 2

Pe rifloncr is thc legal heir of one Narenciar r\Iehta, rcgis tcrecl trlx paye r under the Central Goods ancl Scn,iccs 'l'ax a ;\ct. 2)ll (ftrr short 'rhe CGST Act), har ing (lS I IN No.36,\(-FZP\83003C12W, who passed awa\: ()n 12.10.2t)24 alter passing c,i the order-in origrnal dated 19.03 -202,1, tor the flnarrcial i'ear :1018 1.9., rn a proceeding under 7.1 of rhe CGS,'I' thc busuress operations follorving his fathr:r,s dernise :\ct. Peririoncl contends thar l-re has taken o\-cr tlic con[r<,1 ,rf Florver.cr, hc t,ants to file an appeal againsr ordcr in rhe

- \ -- +E-rd \l 2 original dated 19.03.2024, whtch passcd in respect o[ was M/s.Narendra Marketing. Petluoncr has approachcd this Courr for setting aside the shorv causc notrcc datcd'05.1,2.2023, order-in-original dated 1,9.03.2024, and thc garnishee notice in Form GST DRC-13 dated 15.10.2024 (not scn'ed upon hun), as the same imposes liabillry on hirn as he has takcn ovcr thc business on the demise of his father

Learned Senior Standing Counsel For CRIC, on instructions, submits that in the peculiar circumstanccs, petitionet may be allowed to seek frcsh regisuation and in turn lLle an appeal within a stipulated period

Learned counsel for the petitioner submits that the peurioner had aheady taken fresh registradon rrnder the CGST Act with GSTIN No.36CTTPM4697P1Zt

In that view of thc matter, the V'rit Pcririon is disposed I of, r.vithout entering into tl-re merits of thc casc rlf the petitioner ,

3 and rvith Liburr, to him to filc an appcal rvithin a pcriod o[ thrc:c s,ecks fro:l todav 6. 'fhe pctrrioncr should approach the appellate authorit\. k) prefer thc appeal manuallr' or to provide him rvith uscr ID anr1 passrvorcl to prcfcr appeal through clectronicallt, as against rh,: impugrccl ortlcl iu original dated 19.03.2024, passcd in rcspcct o[ \I/s.NarcncLa '\{arkcring. Petitioner rvill bc at liberfi,' to takc ail grounds' on larv and in fact in such appcal, rvhich nra',, bc consicle re cl irl rl.rc appellate authoriry in accordance s ith a\v r\s rr se<iur:I. miscellaneous petitions, pendug if any, sran<l ck;sccl. Then: shall bc no order as to costs . M.JAWAHAR REDDY ASSISTANT REGISTRAR 6- //II SECTION OFFICER To,

The Superinte rdent of Central Tax, Goshamahal, GST Range BegLtmbazar GST Divrsion, 2no Floors, Amiso Plaza, H.No. 8-2-677lP, Road No. 12, Banjara Hills. l-lyderabad - 500034

The Superint,:ndent lrrlehdipatnam-1, Charminar, Telangana 8tf Floor, Gaganvihar Building, Nampally, Hyderabad-s0O 001

The Principal S;ecretary to Government, Revenue (CT-ll) Department, State of Telangana, Seoretariat, Hyderabad 4 One CC to SRI MAYANK SAVLA, Advocate IOPUCI

W tl One CC toSRl D. RAGHAVENDRA RAO, Senior S.C..for Centrat Board of lndirect Taxes and Customs [OPUCI Two CD Copies IVP TKS

HIGI-I COURT DATED:19t10912025 ..:: .? /',.c"' 1,,,' l1 i<' i'; 2B s iti ?flE \? -"'. --.--"- oRDER WP.No.28056 of 2025 DISPOSING OF THE WRIT PETITION WITHOUTCOSTS g c, .:.-'.:,1

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.