M/S. Shree Kalka Cotton Corporation vs. The Assistant Commissioner St

WP/10898/2025HC TelanganaGSTCNR HBHC01021897202515 April 2025Bench: SUJOY PAUL,RENUKA YARA4 pages

For Petitioner: SRl. V. VEERESHAMFor Respondent: SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STAIE TAX

AI SummaryDismissed

Facts

The petitioner, M/s. Shree Kalka Cotton Corporation, filed a writ petition before the High Court for the State of Telangana challenging a show cause notice in Form DRC-01 dated January 31, 2024, and an order in DRC-07 dated May 1, 2024. Both were issued by the Assistant Commissioner ST, Adilabad Circle, under the CGST/TGST Act, 2017. The petitioner sought to declare these notices and orders as void, arbitrary, illegal, without jurisdiction, and violative of constitutional articles. The tax period in dispute was 2018-19, and an interlocutory application was filed seeking a stay on the operation of the DRC-07 order. The respondents were the Assistant Commissioner ST and the State of Telangana.

Held

The Court did not decide the merits of the case. The learned counsel for the petitioner sought to withdraw the writ petition with liberty to file a properly constituted petition. The other side had no objection to this request. Consequently, the High Court dismissed the writ petition as withdrawn with the liberty prayed for. No costs were awarded. The interlocutory application, if any pending, was also closed. The specific grounds of challenge raised by the petitioner regarding the validity and constitutionality of the show cause notice and order were not adjudicated upon.

Key Issues

1. Whether the show cause notice in Form DRC-01 dated 31.01.2024 and the order in DRC-07 dated 01.05.2024, issued by the 1st Respondent under the provisions of CGST/TGST Act, 2017, are void, arbitrary, illegal, without jurisdiction, and without authority of law, and consequently violative of Articles 14, 19(1)(g), and 265 of the Constitution of India. Petitioner's Contention: The petitioner argued that the impugned show cause notice and order were illegal, arbitrary, and violative of constitutional provisions. They sought to set aside any action taken pursuant to these notices. Revenue's Contention: The judgment does not record any specific arguments from the revenue or state respondents regarding the merits of the case. However, they were represented by the Special Government Pleader for State Tax.

Sections Cited

Section 73, Section 129

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3446 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY,THE FTFTEENTH DAY OF APRIL TWO THOUSAND AND TWENW FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 10898 OF 2025 Between: AND M/s. Shree Kalka Cofton Corooration, 2nd Floor, 4-2-164113A, Sri Ranisathili Colony, Adilabad, Telangana, 504001 Repreggnted by its Partner, Mr' Ramaivatar Tayal, aged about 71 years, S/o. Chironjilal, R/o 13, Jawahar gunj, Sendhwd, Caii No. 3, Ward No. 15, Baruvani Sendhwa, Madhya Pradesh- 451 666 ...PETrroNER The Assistant Commissioner ST, Adilabad Circle, Adilabad Division, H No 9- 6, 2nd Floor, Chandra Hero Complex, Sai Nagar' Dasnapur, Adilabad- 504001 State of Telangana, Through Principal Secretary to Government Revenue Department (Commercial Tax), - Hyderabad, Telangana ...RESpONDENTS 1 2 Petition under Article 226 oI 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, order, or direction more particularly one in the nature of a writ of Mandamus declaring impugned Show cause notice in Form DRC 01 vide Ref no. 2D360124048765A dated 31.01.2024 and an order in DRC-07 vide ref. no.2D360424095883X dated 01 .05.2024 both issued by the 1st Respondent under the provisions of CGST/TGST Act, 2017 as being void, arbitrary, illegal, without jurisdiction and without authority of law apart from being violative of Articles 1a, 19(1Xg) and 265 of the constitution of lndia, and to consequently set aside any action taken pursuant thereto I l I I I I I I I I i t t "' ,Y!!"- lA NO: 1 OF 2025 Petition unde' Section 151 CPC praying that in thre circ;unrstances stated in the affidavit filed irr support of the petition, the High Court rnav be pleased to stay of operation of irnpugned Order in DRC-07 vide ref. no. ZD3\60424095883X dated 01 .O5.2024 iss,ued by the Respondent No. 1 for the terx ceriod 2018-19 under CGST/TGST /rcts, 20'17 pending disposal of the abover V'/rit Petition, as otherwise, the Petitir>rrer will be put to severe Ioss and ha'dship . Counsel for the Petitioner: SRl. V. VEERESHAM Counsel for the Respondents: SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STAIE TAX

The Court made the following: ORDER

rw ': -: -*/ THE HON'BLE THE ACTING CIIIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.1O898 of 2O25 ORDER (Per the Hon'ble tlp Acting Chief Justice Sujog PauI): Sri V. Veeresham, learned counsel for the petitioner and Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, for the respondents 2 l.earned counsel for the petitioner seeks to withdraw this Writ Petition with liberty to file a properly constituted petition. J The other side has no objection. I I I I 4 Accordingly, this Writ Petition is dismissed as withdrawn with the liberty prayed for. No costs. Interlocutory applications, if any pending, shall also stand closed. .A. SRINIVASA REDDY SI TANT REGISTRAR //// SECTION OFFICER To, 3 BM LS 1 2 One CC to SRl. V. VEERESHAM, Advocate [OPUC] Two CCs to SPECIAL GOVERNMENT PLEADER ,High Court for the State of Telangana, at Hyderabad [OUT] Two CD Copies I

HIGH COURT DATED:1 510412025 -.' . 'r ":- t7 .J \.\_ (- iF5 lnt' ,' ?o h ' ,// ORDER WP.No.1089t] of 2025 DISMISSING THE WRIT PETITION AS WITHDRAWN WITHOUT COSTS b ?,( 6

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.