Samanpally Surender vs. The State Of Telangana

WP/23232/2025HC TelanganaGSTCNR HBHC01045970202506 August 2025Bench: K.LAKSHMAN8 pages

For Petitioner: SRI A.V.RAGHU RAM, counser ror the Respono""' ' tTl.3H?3flt?ir"J+tf

AI SummaryAllowed

Facts

The petitioners, M/s. Vedaspace Constructions Pvt. Ltd., M/s. JAR Mobility Solutions, and M/s. Sai Manikanta Traders, filed writ petitions before the Telangana High Court challenging show cause notices and consequential orders issued by various State Tax authorities. The tax periods involved were April 2019 to March 2020 and 2020-21. The petitioners contended that these notices and orders were unsigned, void, arbitrary, illegal, violative of principles of natural justice, and in some cases, barred by limitation. In one instance, the petitioner also challenged the validity of a notification amending Rule 142(1A) of the CGST Rules. The revenue authorities were the respondents. The petitions also sought setting aside of garnishee notices attaching bank accounts.

Held

The Court held that since the impugned notices and orders were unsigned, they were liable to be set aside. This decision was based on a common order previously passed by the Court in W.P.No.21101 of 2024 & batch, dated 28.02.2025. The Court found merit in the petitioners' submission that unsigned notices and orders are invalid. Consequently, the Court set aside all impugned notices and orders. The consequential bank attachment orders were also revoked. The Court explicitly reserved liberty for the respondents to issue fresh show cause notices and orders in accordance with the law. The Court clarified that the limitation period would not be a hurdle for the respondents in undertaking this fresh exercise. The Court did not express any opinion on the merits of the case. The Writ Petitions were disposed of accordingly, with no costs awarded.

Key Issues

1. Whether the show cause notices and consequential orders issued by the Respondent No. 1, being unsigned, are void, arbitrary, illegal, and violative of the principles of natural justice, as contended by the petitioners in W.P. No. 17904/2025 and W.P. No. 18010/2025? 2. Whether the assessment orders and summary orders in Form GST DRC-07, passed without issuing Form GST DRC-01A as contemplated under Rule 142(1A) of the Rules 2017, are invalid, as argued by the petitioner in W.P. No. 18010/2025? 3. Whether the show cause notices and orders issued without generating a Document Identification Number (DIN) are contrary to Circular No. 128/47/2019-GST and Supreme Court judgments, as submitted by the petitioner in W.P. No. 18010/2025? 4. Whether the show cause notice and order in Form DRC-01 and DRC-07, respectively, issued by the Respondent No. 1 under the CGST/TGST Act, 2017, are void, arbitrary, illegal, without jurisdiction, and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India, as argued by the petitioner in W.P. No. 18011/2025? 5. Whether Notification No. 79 of 2020 and G.O.Ms No.24, amending Rule 142(1A) of the CGST/RGST Rules, 2017, are without authority of law and ultra vires to Section 73(5) of the CGST Act, 2017, and violative of Articles 14, 19(1)(g), and 21 of the Constitution of India, as contended by the petitioner in W.P. No. 18011/2025? Petitioner's arguments: The impugned notices and orders are unsigned, void, arbitrary, illegal, violative of natural justice, and in some cases, barred by limitation. Specific arguments include non-compliance with Rule 142(1A), absence of DIN, and unconstitutionality of amendments to Rule 142(1A). Reliance was placed on a common order in W.P.No.21101 of 2024 & batch dated 28.02.2025. Revenue's arguments: Not recorded in the judgment.

Sections Cited

Section 73, Rule 142(1A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 34461 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FOURTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 17904 18010 & 18011 0F 2025 W.P.No.17904 OF 2025 Between: tvl/s. Vedaspace Constructions Pvt. Ltd., Plot No. 12171A, 2nd-Floor, Laxmi Veda Ark, Road No.36, Jubilee Hills, Hyderabad, Telangana - 500033 represented-by its Director Sri Sriraja Chintalapati Vehkata Seetha Ramamu{n! !fl!,. S- o.-p1i 9. A.y.R Sriraja Chintalapati aged about 43 years, R o.-H. No. 15-3'2411118, Flat No. S-1 , Gok6ale Road, Maharanipet. Near Country Club, Samrat, Enclave Apartment, Visakhapatnam - 530002, Andhra Pradesh. ...PETITIONER AND 1. Assistant Commissioner (State Tax), Jubilee Hills lll Circle' Punjagutta, Telangana. 2. State of Tetangana, Rep. by its Principal Secretary,(Revenue) CG Department, Telangana, Secretariat Buildings, Hyderabad. 3. The Branch Manager, lClCl Bank Limited, Banjara Hills, Road No. 14, Hyderabad - 500034. ...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 in the nature of a writ of mandamus viz., (i) declaring Show Cause Notice issued in DRC - 01 dated 31105t2024 bearing Reference No.2D3605240814431) and the consequent order daled 2BtOBl2O24 bearing Reference No. 2D3608241242299 passed in Form DRC - 07 under Section 73 of the Telangana Goods and Services Tax Act, 2017 passed by the Respondent No. I for the period April, 2019 to March, 2O2O as :'i:. . .trjll!e{r.,}.i being unsigned, void, arbitrary, illegal, violative of the principles of natural justice apartfrom being N iolative of Articles 1a, 19(1Xg) of the Constitution of lndia and consequently set aside the same, and to set aside the garnishee notices dated 0710312025 attaching the bank account of the Petitioner Company bearing A/c Nos. 236501000033 and 236505000085 respectively maintained with Respondent No.3 intimated vide communications dated 0410612025 for recovery of alleged dues for the year 2019-20. 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 stay all further action including collection of disputed tax pursuant to the Show Cause Notice issued in DRC - 01 dated 3110512024 bearing Reference No. 2D36O524081442D and the consequent order dated 2BlOBl2O24 bearing Reference No. 2D3608241242299 passed in Form DRC - 07 under Section 73 of the Telangana Goods and Services Tax Act, 20'l 7 passed by the Respondent No. '1 for the period April, 2019 to March,2O2O under the provisions of TSGST Act, 2017. Counsel for the Petitioner : SRI A.V.RAGHU RAM counser ror the Respono""' ' tTl.3H?3flt?ir"J+tf W.P.No.18010 OF 2025 Between: M/sjAR. M9{!ity Solutions, Plot No.38, Yousufnagar, Near MMTS Borabanda, Hyderabad. State of Telangana. Rep. by its proprietoi wr.Mond. Rameez Ahmed. ...PETITIONER The Assistant Commissioner (ST), Hydernagar-ll Circle, Hyderabad. The State .ol Telangana, Rep. by its. principal Secretary, Revenue (CT) Department, Telangana Secretariat, Hyderabad. The Central Board of lndirect Taxes and Customs, Rep. by its Chairman, Ministry.of Fjlql"^", Department of Revenue, North Biock,'Ceritrat SeCretirlit, New Delhi -100 001 . AND 1. 2. 3 ...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 Writ of t/andamus or any other appropriate Writ or Order or Direction declaring. (1) the action of the 1st Respondent in passing the Order, daled 271O212025, the Summary of the Order in Form GST DRC-07' dated 27 tO2l2O25 and the Assessment Order, dated Nil, are barred by limitation, without any signature either physically or digitally, is nonest in the eye of law, (2) the action of the '1st Respondent .in passing the Order. dated 2710212025, the Summary of the Order in Form GST DRC-07, dated 2710212025 and the Assessment. Order, dated Nil, without issuing Form GST DRC-01A as contemplated under Rule 142(1A) of the Rules 2017,is not valid in the eye of law, (3) the action of the '1st Respondent in issuing Show Cause Notice, dated 28111t2O24 and passing the Order, dated 2710212025, the Summary of the Order in Form GST DRC-07, dated 2710212025, and the Assessment Order, dated Nil, without generating Document ldentification Number (DlN), for the tax period 2O2O -21 under the SGST/CGST Acl 20 1 7, is contrary to Ci rcular No.1 28 I 47 I 20 1 I - GST, dated 23t12t2019 and the judgement of the Honoruable Supreme Court of lndia in W.P.(Civil) No.320 of 2022, daled 1810712022, and consequently set aside the Order, dated 2710212025, the Summary of the Order in Form GST DRC- 07, dated 27.0212025 and the Assessment Order,dated Nil, passed by the 1St Respondent, for the tax period 2020-21 under the SGST/CGST Act 2017, as null and void. 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 Suspend the Operation of the Order, dated 2710212025, the Summary of the Order in Form GST DRC-07, dated 271O2t2O25 and the Assessment Order, dated Nil, passed by the 1st Respondent, for the tax period 2020-21 under the SGST/CGST Acl 2017, pending disposal of the above Writ Petition, as otherwise' the Petitioner will be put to severe loss and hardship. Counsel for the Petitioner : SRI MOHAMMED RAFI counser ror the Respono""" ' t;l.BHtBRt?i.tx+t# W.P.No.18011 OF 2025 Between: M/s. Sai Manikanta Traders,tlaving address at Sy. No. 25, plot No..l0, Rampally X Road, Nagjlram, Kggsara, Rangareddy, Telangina- 500068 Represented'by'its ilgplglo^, Polangari.Bal.Reddy, aged ibout 51 years, S/o. p Sathi Reddy, R/o. 4- 88/41 109., . Prashanthi Nagar Colony, Rampally X Road, Nagaram, -Keesara, Rangareddy, Telangana- 500083 ...PETITIONER AND 1 T.he State Tax Officer, (ees-a1q- 1 Circle, Malkajgiri 5th Floor, C.T. Complex, Nampally, Hyderabad - 500 001 State of Telangana, Through Principal Secretary to Government Revenue Department (Commercial Tax), Hyderabad, Telanjana Union of.lndia. tvlinistry of Finance, Represented by its Secretary, North Block, New Delhi-'1 10 001 Central Board of lndirect Taxes and Customs, GST policy Wing, New Delhi Rep by its Commissioner ...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 (i) Declaring show cause notice in Form DRC 01 vide Ref no. 2D361124029125S dated 26.11.2024 and an order in DRc-07 vide ref. no. 2D36o225070613J dated 24.o2.202s both issued by the lst Respondent under the provisions of CGST/TGST Act,2O1l as being void, arbitrary, illegal, without jurisdiction and without authority of law apart from being violative of principles of natural justice and being violative of Articles i a, 19(1 Xg) and 265 of the constitution of lndia, and to consequenfly set aside any action taken pursuant thereto and pass such further or other order(s) as this Hon'ble court may deem fit and proper in the circumstances of the case. (ii) declare the Notification No. 79 of 2020 daled 15.10.2020 issued bythe Respondent No. 4 amending the Rule 142 ( lA) of the central Goods and services Tax Rules, 2017 and corresponding G.O.Ms No.24, Rev. (CT-11) Dept., dated Og.O2.2O2.t issued by Respondent No. 2 amending Rule '142(1A) of rGST Rules, 2017 as being without authority of law 2 3 4 ,/:. and ultra vires to the Section 73(5) of the central Goods and services Iax Act, 2017 and violative of Articles 1 a, 1 9( 1 Xg) and 21 of the constitution of lndia as being without authority of law and ultra vires to the section 73(5) of the central Goods and Services Tax Act, 2017 and violative of Articles 14, 19(1)(g) and 21 of the Constitution of lndia. 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 pleased to stay of operation of impugned order in DRC-07 vide ref no.2D360225070613.1 daled 24.02.2025 issued by the Respondent No. 1 for the tax period 2020-21 under CGST/TGST Acts, 2017 pending disposal of the above writ Petition, as otherwise, the Petitioner will be put to severe loss and hardship". Counsel for the Petitioner : SRI V.VEERESHAM c o u n s e I f o r th e Res po n o " "., :Ti.BH?BR??ir"J+.ff ,

The Court made the following: COMMON ORDER

---- ':rr ;,{}c*,€=t 7 / \ t \ \ THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION Nos. t79o4 18O1O and 18O11 of2025 COMMON ORDER: (Per the Hon'bte the Acting Chief ,Iustice Sujog paul) Learned counsel Sri A.V.Raghu Ram, Sri Mohammed Rafi and Sri V.Veeresham for the petitioners and Sri Swaroop Oorilla, Iearned Special Government Pleader appearing for State Tax.

Regard being had to the similitude of the questions involved, on the joint request of learned counsel for the parties, the matters are analogously heard and decided by this common order.

Learned counsel for the petitioners and learned Special Government Pleader for State Tax submitted that since the impugned notice(s) and order(s) are unsigned, the same may be set aside in vieu, of the common order passed in W.p.No.211O1 of 2024 &, batch, dated2B.O2.2O25. 4. Accordingly, the impugned notice(s) and order(s) in these Writ Petitions are set aside. The consequential bank attachment(s), if any, shall a,lso stand revoked. Liberty is reserved I I

2 to the respondents to issue fresh show cause notice(s)/ order(s) in accordance with law and, for undertaking this exercise afresh, the limitation will not be a hurdle for the respondents.

The Writ Petitions are disposed of without expressing any opinion on the merits of the case. No costs. Interlocutory applications, if any pending, sha1l also stald closed. MOHD.ISMAIL DEPUTY REGISTRAR //// SECTION OFFICER To, 1 . The Assistant Commissioner (State Tax), Jubilee lls lll Circle, Punjagutta, Telangana.

The Frincipal Secretary,(Revenue) CG Department' Telangana' Secretariat Buildings, State of Telangana, Hyderabad' g. ine n"-siitunt Commissioner (ST), Hydernagar-ll Circle' Hyderabad'

The chairman, Ministry of Finance, beparthent of Revenue, central Board of lndirectTaxesandCustoms,NorthBlock,Centralsecretariat,NewDelhi-100 001. s. i6" state Tax Officer, Keesara_ 1 Circle, IVlalkajgiri Sth Floor, c.T. complex, Nampally, HYderabad - 500 001

The'Principil Secretary to Government Revenue Department (Commercial Tax), State of Telangana, Hyderabad' Telangana z. ffre"secretary, Unio-n of inaia, Ministry of Fiiance' North Block' New Delhi-1 10 001 B. One CC to SRI V.VEERESHAM' Advocate IOPUC]

One CC to SRI A.V.RAGHU RAM, Advocate lOPUCl 10.One CC to SRI MOHAMMED RAFI, Advocate' [OPUC] ii.O"" CC to SRI SWAROOP OORILLA, SPL G'P for State Tax' [OPUC] 12.Two CD CoPies. BSK LS

HIGH COURT DATED:0410712025 -1-+--+': '.-. -z-'-, i ltl s; -,' oD'' ,)_\ 2 0 sEP 2025 (j a' .- ;;,- r "i': ,-/2' COMMON ORDER WP.Nos.17904,18010 & 18011 ot 2025 DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS :.'

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.