M/S.Sony Enterprises vs. The State Of Telangana

WP/7675/2025HC TelanganaGSTCNR HBHC01015115202516 April 2025Bench: SUJOY PAUL,RENUKA YARA11 pages

For Petitioner: SRI B.KRISHNA REDDYFor Respondent: SRI SWAROOP OORILLA, Special tGovt Pleader, for State Tax

AI SummaryAllowed

Facts

The petitioners, M/s. Sony Enterprises, Golden Constructions, Manikanta Traders, and Rana Traders, filed writ petitions before the Telangana High Court challenging show cause notices and consequential orders, including Form GST DRC-07, issued by various Deputy Commissioners/Assistant Commissioners (State Tax). The petitions primarily contended that these notices and orders were unsustainable in law, void, illegal, and without jurisdiction. Specific grounds raised included the absence of signatures (digital or electronic) on the impugned documents, lack of DIN, failure to issue Form GST DRC-01A as contemplated under Rule 142(1A), and insufficient opportunity of being heard. The tax periods and amounts in dispute varied across the petitions, with some relating to financial years 2019-20, 2020-2021, and 2017-2018. The respondents were the State of Telangana and its tax authorities.

Held

The Court held that the impugned notices and orders in all the writ petitions were liable to be set aside. This decision was based on the joint submission of the learned counsel for the petitioners and the learned Special Government Pleader for State Tax, who agreed that the unsigned nature of the impugned notices and orders rendered them liable for cancellation. The Court explicitly referred to and relied upon a common order previously passed in WP.No. 21101 of 2024 & batch, dated 28.02.2025, which dealt with identical issues concerning unsigned notices and orders. Consequently, the Court set aside the impugned notices and orders. Liberty was granted to the respondents to issue fresh show cause notices/orders in accordance with the law, and the limitation period would not be a hurdle for this fresh exercise. The Court explicitly stated that it was disposing of the petitions without expressing any opinion on the merits of the case.

Key Issues

1. Whether the show cause notices and consequential orders, including Form GST DRC-07, issued by the respondent authorities are liable to be set aside for being unsigned (digitally or electronically) and lacking a Document Identification Number (DIN)? (Question of law turning on principles of natural justice and procedural fairness under the CGST/SGST Acts and Rules). Petitioner's arguments: The petitioners argued that the impugned notices and orders were unsustainable in law, void, illegal, and without jurisdiction due to the absence of signatures and DIN. They contended that this violated their fundamental rights under Articles 14 and 19 of the Constitution of India and specific provisions of the CGST/SGST Acts and Rules, including Rule 142(1A). They relied on a common order passed by the High Court in WP.No. 21101 of 2024 & batch, dated 28.02.2025, which dealt with similar issues. Revenue's arguments: The Special Government Pleader for State Tax submitted that since the impugned notices and orders were unsigned, they could be set aside in view of the aforementioned common order.

Sections Cited

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

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3/146 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTEENTH 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 NOS: 7675 10472 10475 10476 AND 10479 0F 2025 W.P.NO: 7675 OF 2025 Between: M/s. Sony Enterprises, rep. by its Proprietor Sri Subhash Kumql Singh, .18- 3g7lgl16d;, Teeiapur Vittage, CSX Enclave, Shadnagar, Rangareddy, Telangana-509216' ...'ETIT,.NER AND 1. The State of Telangana, rep. by the Principal Secretary, Revenue (CT) Department, Secretariat, Hyderabad, Telangana. 2. Th6 Deputy'Commissionerisf) (sfu), Mahabubnagar, Nalgonda Division' ...RESPONDENTS Petilion 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 a writ, or order or Direction particularly one in the nature of writ of Mandamus declaring the action of the 2nd respondent in passing the summary of the impugned show cause notice in DRC 0'l and the summary of the impugned order in DRC 07 dated 31.08.2024 without signatures either digitally or electronically along with the attachments to the said proceedings dated 31 .O8.2024 in DRC-07 vide GST No.36CRFPS9B79B2Z4 for the year 2019-20 under the GGST and SGST Act, 2017 as the same are unsustainable in law, being void, illegal, without jurisdiction, without authority of law apart from violative of Articles 14 and 19 of the Constitution of lndia and consequently set aside the same lA NO: 'l OF 2025 Petition under Section 151 CPC praying that in the circumt;tances stated in the affidavit filed irr support of the petition, the High Court may be pleased to grant stay of all furlherr proceedings pursuant to the impugned orrler of the 2nd respondent dated :i1 .08.2024 in DRC-07 vide GST No.36CRFPS9B79B2Z4 for the year 2019-20 urrder the CGST and SGST Acts. Counsel for the Petitioner: SRI B.KRISHNA REDDY Counsel for the Respondents: SRI SWAROOP OORILLA, Special tGovt Pleader for State Tax W.P.NO: 10472 OF 2025 Between: Golden Constructions, Represented by its Partner [r,4r. .Afzal Hussain lvlohammed, 1-16-43811, lrfan Nagar Colony, Sirpur Kagaznr,tgar - 504296. Dist. Komurarn Bheem Asifabad ,..PETITIONER AND 1. The Assistant Commissioner (State Tax), Asifabad Circle, H.Nc,. 19-27,1st Floor, Vyshnavi Complex, Near Flyover Bridge, Mancherial - 50 4208. 2. The Commissioner of State Tax, State of Telagnana Commerciirl taxes complex, lV J Road, Opposite Gandhi Bhavan, Nampally, Hyderabad. 3. The State of I'elagnana, Represented by its Principle Secretary to Government,RevenueCTD,Secretariat,Hyderabad ...R':S'ONDENTS Petition under Article 226 of the Constitution of lndia pray ng that in the circumstances stated in the affidavit filed therewith, the High {.)ourt may be pleased to issue a \\frit of Mandamus or any other appropriate writ, order or direction, declaring the: Show cause Notice dated 26-11-2024 vide reference no. 2D3611240300425, all consequential orders passed in pursuance of the said SCN, including Form CiST DRC-07 order passed daled 25-02-2024 vide reference no. 2D36022507622ge by The Assistant Commissioner (ST), Under Section 73 of the TGST and CGS'| Acl,2017. The summary of under declared tax is as follows. Total Tax Rs. 24,I'2,1166/- (CGST Rs.12,26,033/- and SGST Rs.12,26,0331), Penalty Total Rs.2,45,206/- (CGST Rs.1,22,6031 and SGST Rs.1,22,6031) and interest Total Rs.3l,384/- (CGST Rs.15,692/- and SGST Rs.1t;,692/-) under section 50 of the CC;S- Act,2017 as prescribed under section 73(9) of CGST Act, 2017ITGST Act,2017 , "or the financial year 2020-2021 without ever issuing Form X GST DRCO1A as contemplated under Rule 1421A of the Rules 2017 without signature of the officer concerned in the all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 bythe 1St Respondent and without DIN and without even granting sufficient opportunity of being heard to the Petitioner as arbitrary contrary to the provisions of the CGST/SGST Acts 2017 and contrary to the Article 14, 19 2 9,21 and 265 of Constitution of lndia and consequently set aside the SCN dated 26-11-2024 and.all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 as illegal 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 stay all fu(her proceedings including any recovery, pursuant to the Show cause Notice dated 26-11-2024 vide reference no. 2D361 124O3OO425, all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed daled 25-02-2024 vide reference no. 2D3602250762298 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. 24,52'066/-(CGST Rs.12,26,033/- and SGST Rs.12,26,033/-), Penalty Total Rs.2,45,206/- (CGST Rs.1,22,603/- and SGST Rs.1,22,603/-) and interest Total Rs.31,384/-(CGST Rs.15,6921 and SGST Rs.15,6921) under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2O17fiGST A}I,2O17, for the financial year 2020-202'1 pending disposal of writ petition. Counsel for the Petitioner: SRI UPADHYAY RAGHAVENDER Counsel for the Respondents: SRI SWAROOP OORILLA' Special Govt Pleader for State Tax W.P.NO: 10475 OF 2025 Between: Manikanta Traders, Represented by its Proprietor Sri Srinivas Narla, 5-64/5, Naspur Road, Naspur, Mancherial - 504302, Dist. Mancherial. ...PETITIONER AND 1 . The Assistart C)66rpis516ner (State Tax), Mancherial Circle, 1,i)-27, l st Floor, Vaishnavi Complex, Near Flyover Bridge, l\/anche rial - 5042Ot. . 2. The Commissioner of State Tax, State of Telagnana Commert.,ial taxes Complex, lttl J Road, Opposite Gandhi Bhavan, Nampally, HyCerabad. 3. The State of Telagnana, Represented by its Principle Secretary to Government, R,:venue CTD, Secreteriate, Hyderabad. ...R,ESPONDENTS Petition und,er Article 226 ol lhe Constitution of lndia praying that 'n the circumstances slaled in the affidavit filed therewith, the High Court may be pleased to issue a \Vrit of Mandamus or any other appropriat€j writ, order or direction, declaring the Show cause Notice dated 1610212022 vidr> reference no. 2D3602220125 76 P, all consequential orders passed in pursuance of the said SCN, including For^n ,3ST DRC-07 order passed dated 18/08/2024 vide reference no. 2D3608240628234 by The Assistant Commissioner (ST), Undcr Section 73 of the TGST and CGST Act, 2017. The summary of under declared tzrx is as follows. Total Tax Rs.86,72t4l- (SGST Rs.43,3721- and CGST Rs.43,372 -), and beside leavy of penalty and interest under section 50 of the CGST Act, 2O1Z as prescribed under rser;tion 73(9) of CGST Act, 2017|TGST Ac1,2O1t, for the financral year 201{l-2020 without even issuing Form GST DRCOl A as contemplated under Rule 1421A of the Rules 20'17 without signatu.e of the officer concerned in the all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 by the 1st Respondent and without t)lN and without even granting sufficie rt opportunity of being heard to the petitioner as arbitrary contrary to the prov srons of the GGST/sGST Acts 2017 and contrary to the Article 14, 19 2 9,21 and i2ri5 of Constitution of lndia and consequentl),. set aside the SCN dated 16102120rj-.? and all consequential orders passed in pu rsuance of the said SCN, including Form GST DRC-07 as illegal null and void. lA NO: 1 OF 202s Petition under section 151 cPC praying that in the circumsteLnces stated in the affidavit filed in support of the petition, the High court may be pleased to stay all further proceedings including any recovery pursuant to the Shornr cause Notice dated 16-02-2022 vide reference no. 2D3602 22012s76p, all consecluential orders passed in pursuance of the said scN, including Form GST DRC-07 order passed dated 1810812024 vrde reference no. 2D36o824o628234 by l-he Assistant Commissioner (ST), Untsl Section 73 of the TGST and CGST Act, 2011 . The summary of under declared tax is as follows Total Tax Rs'86,744l- (SGST Rs.43,372tand CGST Rs.43,3721-), and beside leavy of penalty and interest under section 50 of the cGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2017|TGST Act,2O17, for the financial year 2019-2020 pending disposal of writ Petition. Counsel for the Petitioner: SRI UPADHYAY RAGHAVENDER counsel forthe Respondents: sRl swARooP ooRlLLA, Special Govt Pleader for State Tax w.P.NO: 10476 OF 2025 Between: Manikanta Traders, Represented by its Proprietor Sri Srinivas Narla, 5-64/5, Naspur Road, Naspur, Mancherial -504302' Dist. Mancherial' ...PETITIONER AND 1. The Assistant Commissioner (State Tax), It/ancherial Circle' 19-27, 1st Floor, Vaishnavi Complex, Near Flyover Bridge. Mancherial - 504208. 2. The Commissioner of State Tax, State of Telagnana Commercial taxes complex, tM J Road, Opposite Gandhi Bhavan,.Nampally, Hyderabad. 3. The State of Telagnanb, Represented by its Principle Secretary to Government, Revenue CTD, Secretariat, 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 't 3-1 1-2021 vide reference no. 2D3611210224613, all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated 10- 04-2024 vide reference no. 2D36042401475',l N by The Assistant commissioner (sT), Under Section 73 of the TGST and GGST Act,2017. The summary of under declared tax is as follows. Total Tax Rs.2,69,042t- (SGST Rs.1,34,5211- and CGST Rs 1,34,5211-)' and beside leavy of penalty Total Tax Rs.26,904/- (SGST Rs'13'452/- and CGST Rs.13,452l-) and interest under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2O17TGST Act,2O17, for the financial year 2O1B-2O1} without even issuing Form GST DRCOIA as contemplated under Rule 1421A of the Rules 2017 without signature of the officer concerned in the all --- consequentiai orde's passed in pursuance of the said SCN, incluriing Form GST DRC-07 by the 1st Respondent and without DIN and without even granting sufficient opportunity lf being heard to the Petitioner as arbitrary contrary to the provisions of the CGST/SGST Acts 2017 and contrary to the Article 14, 19 2 g, 21 and 265 of Constitution of lndia and consequently set aside the SCN dated 13-1 1- 2021 and all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 as illegal null and void. lA NO: 1 OF 2025 Petition under Siection 151 CPC praying that in the circumst;rnces stated in the affidavit filed in support of the petition, the High Court may be rrleased to stay all further proceedings including any recovery, pursuant to the Sho\v cause Notice dated 13-1 1-2021 vide: reference no. 2D3611210224613, all conse,luential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated'10-04-2024 r,i,le reference no. 2D3604240'14751N by The Assistant Commissioner (ST), Llnder Section 73 of the TGST and CGST rr\ct, 2017. The summary of under de:clared tax is as follows. Total Tax Rs.2,6t),0421 (SGST Rs.1 ,34,5211- and CGST Rs. l,34,521l-), and beside leavy of peralty Total Tax Rs.26,9041 (SGST Rs.13,4521- and CGST Rs.13,4521-) and interest under section 50 of the CGST Prct 2017 as prescribed under section 73(9) of CGST Act, 2U7fiGSf Ad 201 r-, for the financial year 2018-20'19 pending disposal of writ petition. Counsel for the Petitioner: SRI UPADHYAY RAGHAVENDER Counsel for the Respondents: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax W.P.NO: 10479 OF 2025 Between: Rana Traders, Represented by its Proprietor Sri Mohanlal Gehlot, plot No.'1771P, Sriniv'asa Avenue, Pragathi Nagar, Kukatpally, Hyderabad 500090, Dist. Medchal - I\4alkajgiri. AND ,..PET|T|ONER ---::-7 1- The Assistant Commissioner (State Tax), Hydernagar - 1 Circle, 3rd Floor, North Wing, Gaganvihar Building, Opp. Gandhi Bhavan, Nampally, Hyderabad 500001 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 Government, RevenueCTD,Secreteriate,Hyderabad ...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 3110512022 vide reference no. 2D36O522028625G, all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed dated 3011212023 vide reference no.2D361223O691420 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.5,29,662^ (SGST Rs.2,64,8311 and CGST Rs.2,64,8311), and penalty Total Rs.52,9661 (SGST Rs.26,483/- and CGST Rs.26,4831) and beside leavy of interest under section 50 of the CGST Act, 2017 as prescribed under section 73(9) of CGST Act, 2017ITGST Act,2017,for the financial year 2017-2018 without even issuing Form GST DRCOIA as contemplated under Rule 1421A of the Rules 2o1 7 without signature of the officer concerned in the all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 by the 1st Respondent and without DIN and without even granting sufficient opportunity of being heard to the Petitioner as arbitrary contrary to the provisions of the CGSTiSGST Acts 20'17 and contrary to the Article 14, 19 29 21 and 265 of constitution of lndia and consequently set aside the scN daled 3110512022 and all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 as illegal null and void. lA NO: 1 OF 25 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 proceedings including any recovery, pursuant to the show cause Notice dated 31-05-2022 vide reference no. 2D360522O28625G, all consequential orders passed in pursuance of the said SCN, including Form GST DRC-07 order passed - dated 30-12-2023 r'ide reference no. 2D3612230691420 by The Assistant Commissioner (S1'). Under Section 73 of the TGST & CGST {ct, 2017. The summary of under declared tax is as follows: Total Tax Rs 5,:,19,662/- (SGST Rs.2,64,8311 and tIGST Rs.2,64,8311), and penalty Total Rs.52,966/-(SGST Rs.26,4831 and C(3]ST Rs.26,4831) and beside leavy of interest under section 50 of the CGST Ac.i, 2017 as prescribed under section 73(9) of CGST Act, 2017|TGST Act 2Ct17, for the financial year 2017-2018 pending ,Jisposal of writ petition. Counsel for the Petitioner: SRI UPADHYAY RAGHAVENDER Counsel for the Respondents: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax

_ .arr :ataa II t : THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION Nos.7675, LO472, Io475, LO476 and LO479 of 2o25 COMMON ORDER: (Per the Hon'ble the Acting Chief Justice Suiog Paut) Learned counsel Sri B.Krishna Reddy and Sri Upadhyay Raghavender, for the petitioners and Sri Swaroop Oorilla' learned 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 view of the common order passed in W'P'No'21 101 of 2024 &' batch, dated 28-02.2025'

Accordingly, the impugned notice(s) and order(s) in these Writ Petitions are set aside. Liberty is reserved to the respondents to issue fresh show cause notice(s)/ order(s) in !

-- 2 accordance with law. and, for undertaking this exercise afresh, the limitation u,'i1l not be a hurdle for the respondents.

The Writ Petitions are disposed of without expr:ssing any opinion on the rnerits of the case. No costs. Interlocutc,ry applications, if any pending, shall also stald closed. //// K.AMMAJI DFPUTY REGISTRAR ..lSECTION OFFICER The Principa Secretary, Revenue (CT) Department, Secretarilrt, Hyderabad, Telangana, Sitaie of Telangana. The Deputy Cornmissioner (ST) (STU), lvlahabubnagar, Nalgonda Division. The Assistant tlommissioner (State Tax), Asifabad Circle, H.N,:. 19-27,1st Floor, Vyshn,avi Complex, Near Flyover Bridge, lvlancherial - 5t)42O8. The Commissioner of State Tax, State of Telagnana Commercial taxes complex, M " Rcad, Opposite Gandhi Bhavan, Nampally, Hyderrabad. The Assistant ilommissioner (State Tax), Hydernagar - 1 Circl:, 3rd Floor, North Wing, t3aganvihar Building, Opp. Gandhi Bhavan, Namprally, Hyderabad 500001 One CC to SRI B.KRISHNA REDDY, Advocate [OPUC] One CC to SRI UPADHYAY RAGHAVENDER, Advocate [OP(,C] One CC to SRI SWAROOP OORILLA, Special Govt Pleader for State Tax loPUCl Two CD Copies k To 9. PSK. LS 1 2 J 4 5 o 7 8 (

HIGH COURT DATE D: 1 610412025 COMMON ORDER WP.Nos.767 5, 10472, 1047 5, 10476 AND 10479 of 2025 DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS f- T ti \I c' ( c 0 tt t' I C T l F s D t '-a, ( 1L1 4 >\ \

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.