M/S. Prakjyothi Constructions PVT. LTD. vs. The Assistant Commissioner (St)

WP/119/2025HC TelanganaGSTCNR HBHC01000064202520 January 2025Bench: SUJOY PAUL,G.RADHA RANI5 pages

For Respondent: SRI SWAROOP OORILLA, SPECIAL, GOVT PLEADER FOR STATE TAX

AI SummaryAllowed

Facts

The petitioner, M/s. Prakjyothi Constructions Pvt. Ltd., filed a writ petition challenging a show cause notice (SCN) and a consequent order issued by the Assistant Commissioner (ST) for the financial year 2019-20. The SCN was dated August 31, 2024, and the final order was also dated August 31, 2024. The petitioner also sought to declare certain notifications and government orders void. The core of the challenge revolved around the timeliness of the SCN issuance. The respondents included the Assistant Commissioner (ST), Commissioner of Commercial Taxes, State of Telangana, and the Union of India.

Held

The Court held that the show cause notice dated June 4, 2024, was issued beyond the permissible time of limitation as stipulated by Section 73(2) of the Goods and Services Tax Act, 2017. This conclusion was based on the fair admission by the learned Special Government Pleader for State Tax. Consequently, the Court found that the show cause notice was vitiated due to the delay in its issuance. As the entire proceedings and the final order were founded upon this vitiated show cause notice, they could not sustain judicial scrutiny. Therefore, the Court set aside both the show cause notice dated June 4, 2024, and the final order dated August 31, 2024. The Writ Petition was allowed accordingly, with no order as to costs. No specific issue regarding the notifications and government orders was explicitly decided, as the petition was allowed based on the procedural defect in the SCN.

Key Issues

1. Whether the show cause notice dated August 31, 2024, issued under Section 73 of the CGST Act, 2017, is barred by limitation, considering the permissible timeline for issuance? The petitioner argued that the SCN was issued beyond the statutory time limit prescribed for such notices. The revenue, represented by the Special Government Pleader for State Tax, conceded that the SCN was indeed issued beyond the permissible time. The revenue did not dispute that as per Section 73(10) of the Goods and Services Tax Act, 2017, the final order could have been passed on or before August 31, 2024. However, as per Section 73(2) of the Act, the show cause notice should have been issued on or before May 30, 2024. The SCN in this case was admittedly issued on June 4, 2024.

Sections Cited

Section 73, Section 73(10), Section 73(2), Section 168A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3430 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTIETH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND Between: M/s. Prakjyothi .Constructions ,P!,t. Ltd., Having its office at l g-1 1 1 , Road No. 5, famalg Nagar, Hyderabad, Telangana - s00065 Represented by its oirectoi riagnu Ram Reddy Namireddy S/o. N Seetha Ram Reddy, Aged aSout 53 years, fl/o. Hyderabad. .,...PETITIONER AND '1 . The Assistant Commissioner (ST), Malakpet-ll Circle, Channinar Division, Hyderabad, Telangana. 2. Commissioner of Commercial Taxes, State of Telangana, C.T. Complex, Nampatly, Hyderabad- 500001. 3. State of Telangana, Bgp. 9y lts Principal Secretary (Revenue) Department, Telangana, Secretariat Buildings, Hyderabad. a. U1!on of lndia, repres_ented by its Secretary, Ministry of Finance, Department of Revenue, Central Secretariat, New Delhl. .....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, order or direction, more particularly in the nature of a writ of mandamus declaring Notification s6l2o23-cr dated 2g-12-2023 issued by the Respondent No. 4 and the consequent G.o.Ms.No. 170 dated 30-12-2023 issued by the Respondent No. 3 as being void, illegal arbitrary, without jurisdiction, violative of Article t4 of constitution of lndia and Violative of Section 1684 of the I THE HONOURABLE DR. JUSTICE G.RADHA RANI WRIT PETITION NO: 119 OF 2025 /CGST Rules, and also declare the Show Cause Notice in Form No. DRC-01 bearing Ref No.2D36062401 14705 dated 31 -08-2024 uls. 73 and its consequent Order under Form No. DRC-07 bearing Reference No. 2D3608241538485 dated 31-08-2024 passed by the Respondent No.1 for the Financial year 2019-20 as being void, illegal, arbitrary without jurisdiction and non est in the eye of law and consequently set aside the same. 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 action including collection of tax pursuant to the show cause Notice in Form No. DRC-01 bearing Ref No.2D3606240114705 dated 31-08-2O24 uts.73 and its consequent Order under Form No. DRC-07 bearing Reference No. 2D36O824153848S dated 31-08-2024 passed by the Respondent No. 1 for the Financial yeat 2O1g-2O Counsel for the Pelitioner : SRI M.NAGA DEEPAK Counsel for the Respondent Nos.1 to 3 : SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STATE TAX Counsel for the Respondent No.4 : SRI GADI PRAVEEN KUMAR, DEpUTy SOLICITOR GENERAL OF INDIA

The Court made the following ORDER l.A.NO:1 OF 2025 I I

THE HONOURABLE SRI JUSTICE SUJOY PAUL AND TTIE I{ONOURABLE DR. JUSTICE G.RADTIA RANI WRIT PETITION l\1o.119 of 2o25 ORDER: r Hon'ble Sri Jushce Sujoy Paul) None appears for the petitioner.

Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for respondent Nos. 1 to 3. 3. Heard.

Learned Special Government Pleader for State Tax did not dispute that as per Section 73 (10) of the Goods and Services Tax Act, 2017 (for short "the Act"), the Iinal order could have been passed on or before 31.08.2024. As per the Section 73(2) of the Act, the show cause notice could have been issued on or before 30.05.2024, whereas, in the instant case, the show-cause notice IS admittedly, issued on 04.06.2024. In view of this fair admission by learned Special Government Pleader for State Tax, it is clear that the show-cause notice dated 04.06.2024 is issued beyond permissible time of limitation. Thus, the show-cause notice is vitiated. Consequently, the entire proceedings and fina-l order founded upon said show-cause notice I t . cannot sustain judicial scrutiny. I I \ I l

? To SA

Resultantiy, the show-catise notice dated 04.06.2024 and final order dated 31.08.2024 are set aside.

Accordingly, the Writ Petition is a-llowed. No order as to costs. Miscellaneous petitions pending, if any, shall stand closed. .V. KAVITHA ASSISlANT REGISTR^AR //// ION OFFICER

The Assistant Commissioner (ST), Malakpelll Circle, Channinar Division, Hyderabad, Telangana.

The Commissioner of Commercial Taxes, State of Telangana, C.T. Complex, Nampally, Hyderabad- 500001 .

The Principal Secretary, (Revenue) Department, State of Telangana, Telangana, Secretariat Buildings, Hyderabad.

Union of lndia, represented by its Secretary, Ministry of Finance, Department of Revenue, Central Secretariat, New Delhi.

One CC to SRI M.NAGA DEEPAK, Advocate [OPUC]

One CC to SRI GADI PRAVEEN KUMAR, DEPUW SOLICITOR GENERAL OF lNDIA, Advocate (OPUC)

One CC to SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STATETAX Advocate [OPUC]

Two CD Copies W t I I

t I HIGH COURT DATED:2010,,t12025 ORDER WP.No.119 of 2025 ALLOWING THE W.P WITHOUT COSTS. ( + o1i Dr /'a t tiU SI," ip lic i -.) :) (-) 2 0 FEB 2U5 ,j -/ \\ I I I e4 V

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.