M/S. Sathguru Software Products Private Limited vs. Assistant Commissioner

WP/13191/2025HC TelanganaGSTCNR HBHC01026026202517 June 2025Bench: SUJOY PAUL,RENUKA YARA5 pages

For Petitioner: SRI SANTOSH SAGAR KAPILAVAIFor Respondent: SRI SWAROOP OORILLA, SPECIAL GOVERNMENT PLEADER FOR STATE TAX, . Counsel for the Respondent No.5: SRI GADI PRAVEEN KUMAR, DEPUry SOLICITOR GENERAL OF INDIA

AI SummaryDismissed

Facts

M/s. Sathguru Software Products Private Limited (the petitioner) filed a writ petition before the High Court of Telangana challenging an endorsement issued by the Assistant Commissioner (State Taxes) and seeking a direction to enable electronic filing of an undertaking on the GST common portal as per Rule 86(4) of the CGST Rules, 2017 and TGST Rules, 2017, read with Circular No. 125/14/2019-GST dated 18.11.2019. The petitioner sought re-credit of Input Tax Credit (ITC) amounting to Rs. 48,05,836/- for the tax period April 2021 to March 2022. Alternatively, they requested permission to file a manual undertaking. The petition also challenged an assessment order under Section 62 of the TGST Act, issued on March 17, 2025, and sought to prevent the levy of interest and late fees from January 2025 until the ITC is re-credited. During the proceedings, the petitioner's counsel submitted that reliefs (A) and (B) had been granted, rendering the writ petition infructuous, and sought liberty to raise the remaining issues separately.

Held

The Court noted the submission by the petitioner's counsel that reliefs (A) and (B) had been granted, rendering the writ petition infructuous. The petitioner sought liberty to raise the remaining issues separately. The respondents had no objection to this submission. Consequently, the Court dismissed the writ petition as having become infructuous, granting the petitioner the liberty as prayed for. No order was made as to costs. The Court did not explicitly decide on the legality of the endorsement, the requirement for electronic undertaking facility, or the validity of the assessment order, as these issues were rendered moot by the dismissal of the petition. The operative direction was the dismissal of the petition with liberty to the petitioner.

Key Issues

1. Whether the endorsement issued by Respondent No. 1 is illegal, arbitrary, unlawful, and contrary to the provisions of the CGST Act, 2017 and TGST Act, 2017? (Question of law) 2. Whether Respondent No. 1 and Respondent No. 6 should be directed to enable the facility for providing an undertaking electronically on the GST common portal as per Rule 86(4) of the CGST Rules, 2017 and TGST Rules, 2017, read with Circular No. 125/14/2019-GST dated 18.11.2019, to facilitate the re-credit of Input Tax Credit (ITC) of Rs. 48,05,836/- for the tax period April 2021 to March 2022? (Question of mixed law and fact) 3. Whether the assessment order under Section 62 of the TGST Act, dated 17.03.2025, should be set aside, and directions issued not to levy interest under Section 50 and late fee under Section 47 of the CGST Act and TGST Act for the tax period commencing from January 2025 until the ITC is re-credited? (Question of law) Petitioner's Contentions: The petitioner argued that the endorsement was illegal and arbitrary. They contended that the respondents should provide the facility for electronic undertaking as per the rules and circular to enable ITC re-credit. They also sought to set aside the assessment order and prevent the recovery of interest and late fees. The petitioner stated that reliefs (A) and (B) had been granted, making the petition infructuous. Revenue's Contentions: The respondents did not object to the petitioner's submission that the petition had become infructuous and to the liberty sought by the petitioner to raise other issues separately.

Sections Cited

Section 62, Section 50, Section 47, Rule 86(4)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SEVENTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION NO: 13191 OF 2025 [ 3446 ] ...PETITIONER M/s. Sathguru Software Products Private Limited, (A Private Limited Company incorporated under the Companies Act, 1956) Plot No. 54, Sagar Society Road Number 2, Banjara Hills Hyderabad, Telangana - 500034 Represented by its Director Sri. Ragunathan Kannan Between: AND 1 Assistant Commissioner, (State Taxes) Srina Division [t/ayur Kushal Complex, Abids Telangana - 500001 2. Appellate Joint Commissioner of State Tax, Punjagutta Division, Sth Floor, C.T Complex, Nampally, Hyderabad, Telangana -500001 3. Commissioner of Commercial Taxes Department, C.T Complex, Nampally Hyderabad, Telangana -500001 4. State of Telangana, Rep. by its Principal Secretary (Commercial Taxes) Telangana Secretariat Hyderabad, Telangana - 500022 5. Union of lndia, Through the Joint Secretary Department of Revenue lr/inistry of Finance, North Block, New Delhi - 1 10001 6. Goods and Services Tax Network (GSTN), Worldmark 1, Aerocity, lndira Gandhi lnternational Airport, New Delhi - 110037 7. Assistant Commissioner of Central Tax, Somajiguda Range, Ameerpet Division Hyderabad GST Commissionerate 3'o to 5'n Floor, Tomar House, Plot No. 140 H.No.8-3-1040, Opp. Ratnadeep Super lt4arket Srinagar Colony, Hyderabad, Telangana - 500073 8. Principal Commissioner of Central Goods and Services Tax, Hyderabad GST Comniissionerate! 2no Floor, GST Bhavan, Basheerbagh Hyderabad, Telangana - 500004 ...RESPONDEi.ITS gar Colony Circle - 1, Punjagutta Road Gunfoundry, Hyderabad, I Petition unc ,: - Artrcle 226 of lhe Constitution of lrdia pra,/ing that in the circumstances s::.1€ (l in the affidavit filed therewith, the l-1igh Cout1 may be pleased to: A. lssue arr :gr:rrrpriate writ, order or direction morer palicu arly one in the nature cf a ',tr t of lssue a mandamus, or a writ, ,Jirer:tion or order in the nature lF rrandamus setting aside the endorsemr)n1. issued by the Responrler I'J:. 1 bearing Ref No. DSTO-1/36A8DCSj668rlA1ZB/2021-22 dated 2ri.(l:, io25 Iot being illegal, arbitrary, unlarvful and contrary to the provisions o' Oentral Goods and Services Tax Act, 2)17 and Telangana Goods anc 5)ervices Tax Act, 2017, along with a attendant and conseq L ent ir actions thereto. B. lssue a rr:n:lamus, or a writ, direction or order in the rratur,-' of mandamus or any ctl 1r- appropriate writ directing the Respondert No. '1 and Responrler \ o. 6 to enable the facility for providirg t1e undertaking electron cirl i, r>n the GST common portal in terms r:l Rt- le 86(4) of the CGST t?rkrs, 2017 and TGST Rules, 2017 read wit'r Circular No. 12514411'.01\)-,,15f dated 18.11.2019 and thereafter directing the Responrler ll r. 1 to pass the order in Form No. GST IrMlT.03 for re-credit of lnput Tr< lredit of Rs. INR 48,05,836/- (lNR 24,0i1,91ti,/- under CGST and INF t 4,C2,918/- under SGST) for the tax period ,\pril 2021 to March 2A22, to tlre [: ectronic Credit Ledger of the Petitioner rr in the alternative, permit the F":.ilioner to file a manual undertaking, cirec.ing :he Respondent No. 1 arc Ei,l,;pondent No.6 to accept such manual unclertaking, along with all irtte rce nt and consequential actions theretc. C. lssue a rl:niamus, or a writ, direction or order in the natur: of mandamus setting . srC: .tre assessment order u/s 62 of the TGST A,:t in Form AS[rlT- 07 alon 3 M,it r Form DRC-07 daled 17 .03.2025 bea-ing Reference No. 2D36O32502t',t041r,4 issued by Respondent No. 1 and issu€,a direction not to levy, ac lLrs or recover any interest under Section 5() an(l late fee under Section 47 o'f the CGST Act and TGST Act for the applicable tAx liability pertaining to the tax period commencing from January 2025 fll the date of re-credit of lnput Tax Credil to the Electronic Credit Ledger of the Petitioner. lA NO: 2 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 the operation of the assessment order Uis. 62 of the Telangana Goods and Services Tax Act, 2017 in Form ASMT-O7 along with Form DRC 07 dated 17.03.2025 bearing Reference No. 2D3603250284O4M and direct the respondent No. 1 and Respondent No. 7 not to undertake any coercive steps for recovery of the outstanding tax liability arising on the outward supplies commencing from the calendar month of January 2025 and onwards. Counsel for the Petitioner: SRI SANTOSH SAGAR KAPILAVAI Counsel for the Respondents No.1 to 4: SRI SWAROOP OORILLA, SPECIAL GOVERNMENT PLEADER FOR STATE TAX . Counsel for the Respondent No.5: SRI GADI PRAVEEN KUMAR, DEPUry SOLICITOR GENERAL OF INDIA Counsel forthe Respondent Nos.6 to 8: SRI DOMINIC FERNANDES, SENIOR S.C. FOR CBIC

The Court made the following: ORDER

THE HOI*']3]:I] THE ACTING CHIEF JUSTICE SUJO-\I PAUL AND THE Et(]N',BLE SMT. JUSTICE RENUIiA YARlr, WFUT PETITION No. 1319L of 2025 ORDER: reseryed to tlre prtitioner to raise it separately. (t r:'tt .- ,:::tt l;le the Acting Chief .Iustice Sujog Patt) petitioner, slttnr,:r that the reliefs (A) ald (B) heLve bee:I granted and to that e x .€ n t the u/rit petition has rendered infruct.lous. So Sri Sanr l o;h Sagar Kapilavai, learned ,:ounsel for the far the re erl' ( s concerned, he submits that lib,ertr mav be 2. The othe; ;i le has no objection.

Accordinlllr'. the u,rit petition is dismissed havinq rendered infructuous r,,i I I lrc liberty as prayed for. No order as to ,)osts. Miscellan e r r s petitions pending, if any, shal steLncl ,::1osed //// fqst i. B. REKHA RANI $TANT REGISTRAR \ ', SliiCTION OFFTCER To, '1 . One CC t(, S;ftl SANTOSH SAGAR KAptLAVAt, AdVocate tOpUCl

Two s t,r SRI SWAROOP OOry!_LLA, Specia Gcverr^ment pleader for < -i(th Courtforthe Stateof Tetangana at ffyJeraUiOlIOUTI--- -

One CC kr lRl GADI 'RAVEEN KUMAR, Deputy, Soiiciio General of India IoPUC l 4. one cl o SFtr DoN/rNrc FERNANDES, SeniorS.o. forcBrc topucl

Two Cl) l-.pi,:s State /\5 IVP GJP

i HIGH COURT DATED :1710612025 .15 ih' lr i:7 lult 2t[ -r\\t 'i i( ( i ,t 1J J ORDER WP.No.13"lg1 of 2025 DISMISSING THE WRII" PETITION WITHOIUT COSTS I @q 9n...-- -6\elr

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.