M/S Star Agencies vs. Union Of INDIA

WP/7402/2025HC TelanganaGSTCNR HBHC01014697202530 April 2025Bench: SUJOY PAUL,RENUKA YARA5 pages

AI SummaryAllowed

Facts

The petitioner, M/s Star Agencies, represented by its proprietor, filed a writ petition challenging an order dated 25.12.2023 (Ref No. 2D361223048752G) passed by the 4th respondent (Assistant Commissioner, State Taxes) and a consequential order dated 30.10.2024 (Order No. 2D361024032375Q) passed by the 2nd respondent (Additional Commissioner, State Taxes). The petitioner sought to declare these orders as void, arbitrary, illegal, without jurisdiction, and violative of principles of natural justice and constitutional provisions. The petitioner also sought a stay on the demand for Rs. 13,70,424/- (including tax and penalty) arising from the order dated 25.12.2023.

Held

The Court allowed the writ petition. It was held that the impugned show cause notice/order dated 25.12.2023 and the consequential order dated 30.10.2024 are set aside. The Court noted that both parties agreed that these documents were unsigned. Liberty was reserved to the respondents to issue a fresh show cause notice or order in accordance with law. The Court also stated that if any applications are pending, they shall also stand addressed. No costs were imposed.

Key Issues

1. Whether the impugned show cause notice/order dated 25.12.2023 and the consequential order dated 30.10.2024 are liable to be set aside on the ground of being unsigned documents, thereby violating principles of natural justice and constitutional provisions (Articles 14, 19(1)(g), and 265)? Petitioner's Contention: The learned counsel for the petitioner argued that the impugned show cause notice/order and the consequential order are unsigned documents. Therefore, they are liable to be set aside. Respondents' Contention: The learned Assistant Government Pleader representing the State Taxes respondents conceded that the impugned show cause notice/order are unsigned documents and agreed that the same may be set aside.

Sections Cited

CGST Act, 2017, TGSf Ad, 2017

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

134461 H|GH couRr t?T IT=rSItIioF TELANGANA (SPecial Original Jurisdiction) WEDNESDAY, THE THIRTIETH DAY OF APRIL '._-TWTO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SNii JUSTICE RENUKA YARA Between: M/s Star Agencies, Having its regisGred office at' 46-14011' Market Area Mandamarri, tvtanoamaii, "trrt'an"h"ii6t' Telangana' 504231 Reo. bv its Proprietor' Mr' Afsarkhan Mohammd' S/o Sathar Khan tr/ohamrnad Age.43 years' WRIT PETITION NO:7402 oF 2025 ...PETITIONER Union of lndia, Rep.by its Principal Secretary Finance Department' North Block, New Delhi ANO 1. 2 3 4 IXi-3,.Iff 'B,f ,SIl3:[ffi ffi :il ji'fr 3..I3]?l)+5Xffi :X',1'RurarDivision' TheAdditionalCommissioner(StateTaxes),Legal,officeofthe dommissioner (CT), Hyderabad' I elangana' The Assistant commissioner (State Taxes), Mancherial circle' Adilabad Division H.No. 9-6, zno uoo')6fru"no'r.i"ui'r" co*plex' Sai Nagar' Dasnapur' Aditaoao PlN. 5o4oo1' Telangana ...RESPONDENTS PetitionunderArticle226otlheConstitutionoflndiaprayingthatinthe circumstances stated in the affidavit filed therewith' the High Court may be pleased to issue an appropriate writ' order' or direction more particularly one in the nature of Writ of Mandamus declaring impugned Order vide Ref No' 2D361223048752G dated 25.12.2023 passed by the 4th Respondent under the provisions of CGST/TGSf Ad' 2017 and Consequential order passed by the Respondent No. 2, Order No 2D361024032375Q dated 3O'10'2024 as being void,arbitrary,illegal,withoutiurisdiction'violativeoftheprinciplesofnatural Petition Lrnrler Siection 't51 CPC praying that in th: circurrslances stated in the affidavit tired 11 suppert of the petition, the High crurt may t,e preased to stay on the dernanrj for an amount Rs.13,70,424/_, includinrl ta,( and penalty, under order Nc. )rD'30122304g752G dated 25.12.2023 pass,:d ty Respondent No. 4 in DRC-07 justice apart lro rr Constitution of lnrlia lA NO: 1 oF 2025

The Court made the fc,llowing: ORDER being violative of Articles 14, 1g(1)(g) a .rc 265 of the ;rnd to consequenfly set aside the same. Counset for the petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Resp rrrdent No.1: SRI GADI PRAVEEN KUMAR Dy. SoLtCtTOR GEN. OF rNDtA Counsel for the Resporrdent No_s.2 to 4: SRI CHAITANYA KIRAN AGp REPRESENflNG sRi:;r^/ARoop oonri_n,'siilrAL Gp FoR SrArE TAx

THE HON,BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HoN'BLB swrt' iuitlcE RENUKA YARA WRIT PETIILOI No.7 4O2 of 2A25 ORDER the Petitioner Government (Per the Horlble t'he A(:tiLg (-hiel 'lusttce Sujog Pattl)" Sri Thanneru Chattanva i(umar' learned counsel for and Sri Chzritanva Kiral ' learned Assistanr' Pleader representlng Sri Swaroop Oorilla'

With the consent' fiirall-v hearc'

During the course 1l ilr-'a'ring' learrreci cotrnsel ror the: parties iairllr submit tirat tl-rc r:---,; r''uqned show cause notice/order are unsigr'erl clocr-:menls anci ihereiore' in the iearned Special Government l'leacler r'or St/rte Ta-K' resPorrdents- light 'r:atch. ciaLeci 2E'O2'20'25' the W. P.No.21 101 of 2024 ar"'1 same maY be set aside'

Accordingiy' the inrp':gned sllo"r' calLse noiice/order are set aside Liberty is rescrved to the responde'nts to issue fresh show cause notlce; orclcr- in accci'dan'':: witti larv and' for the of tlie recent corrin<'tr or-tler patssec'i bl' tiris Cortrt rn

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HIGH COUR-r DATED:3010412025 ORDER WP.No.7402 of 20Zs DISPOSING OF: THE WRIT PETITION WITHOUT COSTS l+ a .:l'.. . .. - ? Lttru 2925 ;I ^t o^ c -t n {+ ,l ---.- F i' 2Ll{ r>:

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.