M/S.Asrani Tubes Limited vs. The Deputy Commissioner (St)

WP/12627/2023HC TelanganaGSTCNR HBHC01022977202305 March 2025Bench: SUJOY PAUL,RENUKA YARA5 pages

For Petitioner: SRl. SHAIK JEELANI BASHAFor Respondent: SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

AI SummaryRemanded

Facts

M/s. Asrani Tubes Limited (Petitioner) filed a writ petition challenging an order passed by the Deputy Commissioner (ST) (Respondent) under Section 73 of the CGST Act, 2017, dated February 13, 2023, for the tax period July 2017 to March 2018. The order disallowed Input Tax Credit (ITC) alleging invalid ITC under Section 16(4) of the CGST Act, 2017. The Petitioner also challenged a Summary of the Order in Form GST DRC-07, dated February 13, 2023, and proceedings issued by the Respondent. The Petitioner contended that these documents were unsigned and undated, violating principles of natural justice and the CGST Act. The Petitioner had filed detailed objections on December 16, 2021, and December 30, 2022, which were allegedly not considered.

Held

The Court, upon hearing the learned counsel for both parties, noted the fair submission by the respondents that the impugned show cause notice and the order were unsigned documents. In light of this admission and the precedent set by this Court's common order in W.P.No.21101 of 2024 and batch, dated February 28, 2025, the Court set aside the impugned show cause notice and the order. The Court reserved liberty to the respondents to issue a fresh show cause notice and/or order in accordance with law. It was further clarified that for undertaking this exercise afresh, the limitation period would not be a hurdle for the respondents. The Writ Petition was disposed of without expressing any opinion on the merits of the case. No costs were awarded.

Key Issues

1. Whether the order passed under Section 73 of the CGST Act, 2017, and the Summary of the Order in Form GST DRC-07, dated February 13, 2023, are valid in law, considering they were allegedly unsigned and undated, thereby violating principles of natural justice and the CGST Act, 2017? Petitioner's arguments: The Petitioner argued that the impugned show cause notice and the order were unsigned documents, rendering them invalid and contrary to law. They relied on a common order passed by the High Court in a batch of writ petitions (W.P.No.21101 of 2024 and batch, dated February 28, 2025) which dealt with similar issues of unsigned orders. Respondents' arguments: The respondents, through the Special Government Pleader for State Tax, fairly submitted that the impugned show cause notice and the order were unsigned documents. They consented to the setting aside of these documents in light of the aforementioned common order of the High Court.

Sections Cited

Section 73, Section 16(4)

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) WEDNESDAY,THE FIFTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 12627 OF 2023 Between: M/s.Asrani Tubes Limited,, 1O2, 5-5-54, Hari Ganga I\/arket, Ranigunj, Secunderabad. Rep. by its Director Mr.Shyamlal A. Asrani ...PETITIONER AND 1. The Deputy Commissioner (ST), STU2, Begumpet Division, Hyderabad. 2. The State of Telangana, Rep. by its Principal Secretary, Revenue (CT) Department, Telangana Secretariat, Hyderabad. (2nd Respondent is not necessary Party) ...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 Writ of l\/andamus or any other appropriate Writ or order or direction declaring the action of the 1sr Respondent in passing the Order under Section 73, dated 13.02.2023 without signature or digital signature along with a Summary of the Order in Form GST DRC-07, dated 13.02.2023 without signature or digital signature and Proceedings of the l St Respondent without date, without signature or digital signature for the tax period July, 2017 to March, 2018, disallowing the ITC alleging invalid ITC under Section 16(4)of the CGST Act, 2017 without considering the detailed objections filed by the Petitioner, dated 16.12.2021 on 18.12.2021 and 30.12.2022, passing the Proceedings by the 1"t Respondent as arbitrary, contrary to law, against to the provisions of the CGST Act and SGST Act, 2017, not valid in the eye of law, without jurisdiction and in violation of Principles of Natural Justice and Rule of Law and consequently set aside the Order passed under Section 73, dated 13 02.2023 along with a Summary of the Order in Form GST DRC-07, daled 13.02.2123 of the 1st Respondent as null and void lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumst,ances stated in the affldavit filed irr support of the petition, the High Court may be pleased to suspend the operat on of the Order passed by the 1't Respondenl under Section 73, dated 13.O2.2O.2-3 along with Summary of the Order in Form GST DRC-07, dated 13.02.2023 c,f the 1't Respondent demanding the tax for the tax period July,2017 to lVarch, 2018 under the State Goods and Service Tax Act 2017 and Central Goods and Service Tax Act 2017, pending disposal of the above Writ Petition, as otherwis,e, the Petitioner will be put to severe lc, and hardship. Counsel for the Petitioner: SRl. SHAIK JEELANI BASHA Counsel for the Respondents: SRI SWAROOP OORILLA , SPECIAL GP FOR STATE TAX

The Court made the following: ORDER

"**7 THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL IIND THE HON'BLE SMT. JUSTICE RENUKA YARA U/RIT PETITION No.12627 of 2o23 ORDER (Per the Hon'ble the Acting Chief Justice Sujoy Paul)'. Sri Shaik Jeelani Basha, learned counsel for the petitioner, \ arrd Sri Swaroop Oorilla, learned Specia'l Government Pleader for State Tax, for the respondents.

With the consent, hnallY heard.

During the course of hearing, Iearned counsel for the parties fairly submit that the impugned show cause notice and the order are unsigned documents and therefore, in the light of the recent common order passed by this Court in W.P.No.211O1 of 2024 and batch, dated 28.02.2025, the sarne may be set aside.

Accordingly, the impugned show cause notice and the order are set aside. Liberty is reserved to the respondents to issue fresh show cause notice/order in accordance with law and, I \ I

2 for undertakrng this exercise afresh, the limitation r,., ill not be a hurdle for tht: respondents

The \Vrit Petition is disposed of without exp:'essing any opinion on the merits of the case. No costs. Interlocutory applications, if any pending, shall also stand closed A.V.S.PRASAD //// 4SSlqrANr REGISTRAR SECTION OFFICER To, '1 . The Deputy rlommissioner (ST), ST-U-2, Begumpet.Dvision, Hyderabad . z. rne prihcipal secretary, Revenue (cT) Department, Telangarra secretariat, Hvderabad. 3 Oire CC to l;Rl. SHAIK JEELANI BASHA Advocate [OPUC] +. T*o CCs to SPECIAL GP FOR STATE TAX ,High Court for t1e State ot Telangana at HYderabad [OUT]

Two CD CoPries BM GJP (4. \

HIGH COURT DATED:0510312025 ORDER WP.No.12627 of 2023 DISPOSING OF THE WRIT PETITION WITHOUT COSTS ?+ t( l< lz-l .p. f il o \\: 03 ,tPn zffi 1it -l- .^ * . t ,!:- \.'\ ;.

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.