Dalapathi Constructions vs. The Assistant Commissioner (State Tax)

WP/11116/2025HC TelanganaGSTCNR HBHC01020962202522 April 2025Bench: SUJOY PAUL,RENUKA YARA4 pages

AI SummaryDismissed

Facts

Dalapathi Constructions (Petitioner) filed a writ petition challenging a Show Cause Notice (SCN) dated 13.11.2021 and a consequential Form GST DRC-07 order dated 31.12.2023, both issued by the Assistant Commissioner (State Tax) (Respondent). The SCN and order pertained to the financial year 2017-2018 and involved a total tax demand of Rs. 5,86,740 (SGST Rs. 2,93,370 and CGST Rs. 2,93,370), penalty of Rs. 58,674 (SGST Rs. 29,337 and CGST Rs. 29,337), and interest under Section 50 of the CGST Act. The Petitioner contended that the proceedings were initiated without issuing Form GST DRC-01A as required by Rule 142(1A), the orders lacked the officer's signature and DIN, and no sufficient opportunity of being heard was provided.

Held

The Court did not decide the substantive issues raised by the Petitioner. Instead, the learned counsel for the Petitioner sought to withdraw the writ petition with the liberty to file a properly constituted petition. The learned counsel representing the respondent-State Tax had no objection to this request. Consequently, the Court dismissed the writ petition as withdrawn, granting the liberty as prayed for. No costs were awarded. Any pending miscellaneous petitions were also closed.

Key Issues

1. Whether the Show Cause Notice dated 13.11.2021 and the consequential Form GST DRC-07 order dated 31.12.2023, issued by the Assistant Commissioner (State Tax) under Section 73 of the TGST and CGST Act, 2017, are liable to be set aside for non-compliance with procedural requirements, specifically the absence of Form GST DRC-01A, officer's signature, DIN, and adequate opportunity of being heard? (Question of law and mixed fact and law, turning on Section 73 of the CGST/TGST Act and Rule 142(1A) of the CGST Rules). Petitioner's arguments: The Petitioner argued that the entire process was arbitrary and contrary to the provisions of the CGST/SGST Acts, 2017, and Articles 14, 19, 21, and 300A of the Constitution of India, due to the alleged procedural lapses. Respondents' arguments: The judgment records no specific arguments from the respondents.

Sections Cited

Section 73, Section 50, Rule 142(1A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 34461 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSANDAND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 1't 116 0F 2025 Between: Dalapathi Constructions, Represented by its Managing partner Sri Venkata Nagaraju Dalapatirao, 8-4-37619, Enagiadda, Hyderibad - 5000.t8, Dist. Hyderabad. AND ...PET!T|ONER 'l . The Assistant Commissioner (State Tax), Vengalarao Nagar 2 Circle, Punjagutta Division, 5:9-27917th floor, B gtoc( Mayur Kulhal Compiex, Beside Chermas, Abids, Hyderabad - 500001. 2. The Commissioner of State Tax, State of Telagnana Commercial taxes ^ 9.orp!"1, M-J Road, Opp_osite Gandhi Bhavan, Nampafly, Hyderabad. 3. The State of T_elagnana, Represented by its principai SeCretary to Govemment,RevenueCTD,secretariat-,Hyderabbd. ...RES'ONDENTS 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 of Mandamus or any other appropriate writ, order or direction, declaring the Show cause Notice daled 13t11t2021 vide reference no. 2D36112101gOg21, ali consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated 3)t12t2023 vide reference no. 2D361223O67626A by The Assistant Commissioner (ST), Under Section 73 of the TGST and CGST Acl, 2017. The summary of under declared tax is as folows Total Tax Rs.5,86,740l- (SGST Rs.2,93,3701- and CGST Rs. 2 93,3701-), and beside leavy of penalty Total Rs.58,674I-(SGST ps.29,3371- and CGST Rs.29,332-) and leavy of interest under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2O17fiGST Ac1,2017, for the financial year 2O17-2O1 B without even issuing Form GST DRCOI A as contemplated under Rule 1421A of the Rules 2017 without signature of the officer i I concerned in the ar ::onsequentiar orders passed in pursuanca .f the said scN, including Form c;si'r DRC-07 by the 'rSt Respondent and without DIN and without even granting sufrir ent opportunity of being heard to the petiti.ner as arbitrary contrary to the provi ; ons of the CGST/SGST Acts 2017 and coltrirry to the Article 14' 1s 2 g, 21 . er d ir65 of constitution of rndia and consequenl y set aside the scN dated 13,t1' rz( :?.1 and ar consequentiar orders .passed ir p:rsuance of the said SCN, includi.r 3 :,:rrm GST DRC-07 as illegal null and void lA NO: 't OF 2025 Petition un C lr the affidavit filed n s all further proceedinr dated 1311112021 t,x passed in pursualtoe daled 3ol12l2O2:t , Commissioner (S'f r, summary of unde,r r Rs.2,93,370/- antl ( Rs.58,674l-( SGST under section 50 of CGST Act, 2Y7fic disposal of writ pel itio :Section 151 CPC praying that in the circ:rnsr:ances stated in upport of the petition, the High Court mav be pleased to stay s including any recovery, pursuant to the Sho w cause Notice e: reference no. ZD36l 1210190921 , all conse:quential orders 'rf the said SCN, including Form GST DRC_02 order passed ide reference no. 2D361223067626A Ly The Assistant l]nder Section 73 of the TGST and CGST,,\ct, 2017. The eclared tax is as follows: Total Tax Rs.5,gri,740l_ (SGST tlST Rs.2,93,3701-), and beside leavy, of penalty Total 1s.29,3371- and CGST Rs.29,337/-) anrj teavy of Interest he CGST Acl, 2O1l as prescribed under st,rction 73(9) of l'l Act, 2017 , for the financial year 20 17-2018 pending Counsel for the Petit cner: SRt UpADHyAy RAGHAVENDER COUNSEI fOr thE RE:;P rNdENtS: SRI T.CHAITANYA KTRAN FOR SRI SWAROOP OORILLA, Special Govt pleader for State Tax

The Court made the f,rllowing: ORDER I i

THE HON,BLE THE ACTING CHIEF JUSTICE SUJOY PATIL' AND THE HON,BLE SMT JI'STICE RENUKA YARA WRIT PETITION NO.111 16 0F 2025 ORDER: (Per the Hon'ble the Acting Ctuef Ju stice Sujog Paut) Sri Upadhyay Raghavender' learned colrnsel for the petitioner, seeks to withdraw this writ petition with the liberty to file a properly constituted petition'

Sri T'Chaitanya Kiran' learned cor-rnsel representing Sri Swaroop Oorilla' Iearned Special Government Pleadet for the respondent-State Tax' has no objection'

Accordingly, the Writ Petition is dismissed as withdrawn with the liberty prayed for' No costs' Miscellaneous petitions pending' if any' sha1l stand closed' P. CH. NAGABHUSHA-M BA -"' ' ' -'bEPUw REGISTRAR /T// SECTION FICER To i.3lE33is3RlsfiA,Jt"dJs3,llx=$?:.i:i33Y3F?::I:'r':|I.,.",,* toPucl two CD Copies 3 PSK. LS l' I I

HIGH COUFI'I- DATED:2210a,1292U ORDER WP.No.11116 ot 2025 DISMISS!NG'I-HE WRIT PETITION AS WITHDRA A/N WITHOUT COSTS / 2..4 -- : 5T6I€ .) 2o l ,L(,r ] ,1t , y'z / .-. ....-...2 ,

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.