Manikanta Traders vs. The Assistant Commissioner (State Tax)

WP/10613/2025HC TelanganaGSTCNR HBHC01021224202517 April 2025Bench: SUJOY PAUL,RENUKA YARA4 pages

AI SummaryDismissed

Facts

The petitioner, Ivlanikanta Traders, represented by its proprietor Sri Srinivas Narla, filed a writ petition challenging a Show Cause Notice (SCN) dated 13-11-2021, issued by the Assistant Commissioner (State Tax), Mancherial Circle. The SCN pertained to the financial year 2017-2018 and alleged under-declared tax amounting to Rs. 2,90,744 (SGST Rs. 1,45,372 and CGST Rs. 1,45,372). The petitioner also challenged the consequential Form GST DRC-07 order dated 01-12-2023, passed under Section 73 of the TGST and CGST Act, 2017. The petitioner contended that the SCN and subsequent orders were issued without Form GST DRC-01A, without the signature of the concerned officer, and without granting a sufficient opportunity of being heard, violating statutory provisions and Article 19(1)(g) of the Constitution. The petition sought to set aside the SCN and all consequential orders.

Held

The writ petition was dismissed as withdrawn. The petitioner, through their counsel, sought permission to withdraw the writ petition with the liberty to file a properly constituted petition. The Court granted this request. Therefore, the Court did not adjudicate on the merits of the issues raised regarding the validity of the Show Cause Notice and the consequential order. The specific procedural irregularities alleged by the petitioner, such as the non-issuance of Form GST DRC-01A, the absence of an officer's signature, and the lack of a sufficient opportunity of being heard, were not examined or decided by the Court. The dismissal was solely based on the petitioner's request to withdraw the case. No order was made as to costs. 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 01-12-2023, issued under Section 73 of the TGST and CGST Act, 2017, are liable to be set aside for non-compliance with mandatory procedural requirements, specifically the issuance of Form GST DRC-01A and the grant of an adequate opportunity of being heard, thereby violating the principles of natural justice and Article 19(1)(g) of the Constitution? Petitioner's Arguments: The petitioner argued that the entire process, from the SCN to the final order, was arbitrary and contrary to the provisions of the CGST/SGST Acts, 2017. Key contentions included the non-issuance of Form GST DRC-01A as contemplated under Rule 142(1A) of the Rules, 2017, the absence of the officer's signature on consequential orders, and the failure to provide a sufficient opportunity of being heard. These procedural lapses, the petitioner contended, rendered the orders illegal, null, and void, and also infringed upon their fundamental right to practice any profession, trade, or business under Article 19(1)(g) of the Constitution. Respondents' Arguments: The judgment does not record any specific arguments made by 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

134461 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE SEVENTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 10613 OF 2025 Between: Ivlanikanta Traders, Represented by its Proprietor Sri Srinivas Narla, 5-64i5, Naspur Road, Naspur, Mancherial -504302, Dist. Mancherial. ...PETITIONER AND 1 . . The Assistant eqmmissioner (State Tax),,-Mancherjal Circle, 19-27, 1 st Floor, Vaishnavi Complex, Near Flyover Bridge, Mancherial- 504208. 2. The Commissioner of State Tax, State of Telagnana Commercial taxes complex, M J Road, Opposite Gandhi Bhavan, Nampally, Hyderabad. 3. The State of Telagnana, Represented by its Principle Secretary to Govemment, Revenue CTD, Secreteriate, Hyderabad ...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 of Mandamus or any other appropriate writ, order or direction, declaring the Show cause Notice dated 13-1 1-2021 vide reference no, 2D3611210224340, all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated 01- 12-2023 vide reference no. 2D361223001627Q by The Assistant Commissioner (ST), Under Section 73 of the TGST and CGST Act, 2017. The summary of under declared tax is as follows Total Tax Rs.2,90,7441- (SGST Rs,1,45,3721- and CGST Rs'1 ,45,372l-), and beside leavy of penalty and interest under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 20'1 7/TGST Act,2017, for the financial yeat 2017-2018 without even issuing Form GST DRCOl A as contemplated Lrnder Rule 1421A of the Rules 2017 without signature:, of the officer concerned in the a, crnsequentiar orders passed in pursuance of the said scN, including Form GST DFlc-03 by the 1st Respondent and w thout Dl.rl and without even granting :;uffir:ienl oppofiunity of being heard to the petitronerr as arbitrary contrary to the 1)rov sio:s of the cGST/SGST Acts 2017 and contrar), to the Articre i4. 19 2 g SCN dated cons€ quentl,/ set aside the and all consequential orders passeC in OLrsjuance of the said SCN, includ n,3 Fo-rn GST DRC-O7 as illegal null and vo d lA NO: 'l oF 202s Petition uncrer so.tion i51 cpc praying that in the circumstan:es stated in the affidavit firec in supoort of the petition, the High court may be preased to stay all further proceedinqs incruding any recovery, pursuant to the shorrv oause Notice dated '13-'l 1-2021 vide'erference no. 2D3611210224340, a, consequentiar orders passed in pursuance of the said scN, incruding Form GST DRC-07 0rder passed dated 01-'12-2023 vidz reference no. 2D361223001627Q by Tire Assistant Commissioner (ST), Unrter Section 73 of the TGST & CGST Act 2017. The summary of under declared tax is as follows Total Tax Rs.),g0,244l_ (SGST Rs.1 ,45,372/- an,i CGS- Rs.1 ,45,372t-), and beside leavy of penalty and interest under section 5C, of the CGST Act, 2017 as prescribed under secticn 73(9) of CGST Act, 2O1Z/TGST Act,20.1 7, for the financial year 2017-2O.tB pending d isposa I of writ petitJon Counsel for the F,etitioner 21 a^.C 2(fi of Constitution of lndia and 13- 1 1-202. -SRI GAJANANO CHAKRAVARTHY, APPT:ARING SRI UPADHYAY RAGHAVENDER Counsel for the Responr,ents: SpECIAL GOVT 'LEADER FOR STATE TAX

The Court made the follorving: ORDER

THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No. 10613 of2025 ORPER: (Per the Hon'ble the Acting Chief Justtce 5u1oy Paul) )unsel appearing for Sri Cajanand Chakravarthy' learned c( Sri UPadhYaY Raghavender, lea.rned counsel for the petitioner' seeks to withdraw this lwrit petition with the liberty to the petitioner to file a properly constituted petition'

Accordingiy, the writ petition is dismissed as withdrawn u,ith the Iiberty prayed for' No order as to costs' Miscelianeous petitions pending' if any' sha11 stand closed' S, MALLIKARJUNA RAO ASSISTANT REGISTRAR ,i/ A SECTI FFICER To, 1. 2. 3. 4.

5.6.

TJ LS The Assistant Commissioner (State Tax), [\,4ancherial Circle, 19-27, 1 st Floor, Vaishnavi Complex, Near Flyover Bridge, lVancherial 504208. The Commissioner of State Tax, State of Telaqnana Commercial taxes ggmplex, lV J Road, Opposite Gandhi Bhavan, Nampally, Hyderabad. The Principle Secretary to Government, Revenue CTD; Se;reteriate, The State of Telagnana, Hyderabad One CC to Sri Upadhyay Raghavender, Advocate IOPUCI Two CC to The Special GP for State Tax, High Court for the State of Telangana, at Hyderabad[OQT] Two CD Copies

HIGH COURT DATED:1710412.025 ORDER /a: 'l:: _\ -. ._ I -_/;/ :. i s ;.' t , Y:, s \N (-) \.. ^ ,,..1 "i. -i. WP.No.10613 of 2025 DISMISSING THE WRIT PETIT]ON AS WITHDRAWN WITHOUT COSTS 7 /,4 -, a-,/4. ? n

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.