Maheshwari Pharmacy vs. The Assistant Commissioner (State Tax)

WP/1021/2025HC TelanganaGSTCNR HBHC01001316202510 January 2025Bench: SUJOY PAUL,G.RADHA RANI4 pages

For Petitioner: SRI GAJANAND CHAKRAVARTHY, REPRESENTING SRI UPADHYAY RAGHAVENDERFor Respondent: SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

AI SummaryDismissed

Facts

The petitioner, Maheshwari Pharmacy, challenged an order dated April 25, 2024, passed by the Assistant Commissioner (State Tax) under Section 73 of the TGST and CGST Act, 2017. The order demanded tax of Rs. 84,99,761 (CGST Rs. 42,49,881 and SGST Rs. 42,49,881) and a penalty of Rs. 8,49,981 (CGST Rs. 42,499 and SGST Rs. 42,499), along with interest. The petitioner contended that the order was passed for the financial year 2018-19 without following due procedure under Section 65 read with Section 73 of the Act, and was beyond the time prescribed under Section 73(10). This was in light of Notification No. 56/2023 and Telangana Government's G.O.MS No. 170, which extended the limitation period under Section 168A of the CGST Act, 2017. The petitioner sought to declare the demand, penalty, interest, and the G.O. as illegal, ultra vires, and violative of constitutional provisions and principles of natural justice.

Held

The petitioner sought to withdraw the writ petition with the liberty to file an appeal. The respondents had no objection to this request. Consequently, the High Court dismissed the writ petition as withdrawn, granting the petitioner the liberty to file an appeal. No costs were imposed. The court did not delve into the merits of the issues raised regarding the validity of the order, the limitation period, or the G.O. The operative direction was to dismiss the petition as withdrawn with liberty to appeal.

Key Issues

1. Whether the order passed by the Assistant Commissioner (State Tax) demanding tax, penalty, and interest for the financial year 2018-19, purportedly under Section 73 of the TGST and CGST Act, 2017, was passed without following the due procedure contemplated under Section 65 read with Section 73 of the Act? 2. Whether the said order was barred by limitation as prescribed under Section 73(10) of the CGST Act, 2017, despite the extension of limitation under Notification No. 56/2023 and G.O.MS No. 170? 3. Whether G.O.MS No. 170, issued by the Government of Telangana, is ultra vires Section 168A of the CGST Act, 2017, and violative of Articles 14, 19, and 265 of the Constitution of India and the principles of natural justice? Petitioner's arguments: The petitioner argued that the order was passed without adhering to the procedural requirements of Section 65 read with Section 73 of the CGST Act, 2017. They further contended that the demand was time-barred under Section 73(10) of the Act. The petitioner also challenged the validity of G.O.MS No. 170, asserting it was ultra vires Section 168A of the CGST Act, 2017, and violated constitutional provisions and natural justice principles. Respondents' arguments: The judgment records no specific arguments made by the respondents.

Sections Cited

Section 73, Section 65, Section 73(10), Section 168A, Section 50

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAO (Special Original Jurisdiction) FRIDAY, THE TENTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL ,AN THE HONOURABLE DR. JUSTICE G.RADHA RANI WRIT PETITION NO: 1021 OF 2025 [ 3430 ] ...PETITIONER Between: AND 1 Maheshwari Pharmacy, Represented by its Proprietor Sri Kiran Kumar Moturi, H.No.4-202 lo 4-204,' Janinabhoomi Nagar, Near Bust Stand, Mancherial - 504208. Dist. Mancherial. ' 2 3 The Assistant Commissioner (State Tax), Mancherial Circle, H.No. 19-27 ' 1sl Floor, Vyshnavi Complex, Neir Flyover Bridge, Mancherial - 504208 The Commissioner of State Tax, State of Telagnana Commercial taxes complex, M J Road, Opposite Gandhi Bhavan, Nampally, Hyderabad. The State of Telagnana, Represented by its Principle Secretary to Government, Rev-enue CTD, Secreteriate, Hyderabad ...RESPONDENTS Petition under Article 226 ot 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 order passed by The Assistant commissioner (sT), under Section 73 of the TGST and CGST Act, 2017 vide reference no' 2D360424056202Q dated 25.04.2024 in demanding a tax of Rs.8499761(CGST Rs.4249881 and SGST Rs.424988/-) and penalty of Rs.849981(CGST Rs'42499/- and sGST Rs.42499/-)and beside leavy of interest under section 50 of the CGST Act,2017 as prescribed under section 73(9) of CGST Act, 2017|TGST Act'2O17, for the Year financial Year 2018-19 without following the due procedure of the law contemplated under section 65 read with section 73 of GGST Act,2017|TGST Act, ll r I I ! I I t' 2017, as beyond the time prescribed under section 73(10) of the CGST Act, 2017|TGST Act, 2017 in consequence of the Notification No. 56/2023 dated 28J2.2023 issued by the CBIC and adopted by Government of Telangana vide G.O.MS No.'1 70 dated 30.12.2023 thereby extending the limitation under the provisions of Section 168(,4) of the Central Goods and Service Tax Act, 2017 (tor short, the CGST Act of 2017) as illegal, violated of article 14 of the constitution of lndia barred by limited and without jurisdiction by declaring the G.O.Ms. No.170 dated 30.12.2023 issued by the Government of Telangana as ultra vires section '168A of the CGST Act,2017/TGST Act,2017 and violative of principles of Natural Justice part from being violative of Article 4, 19 and 265 of Constitution of lndia and consequently set aside the same in the interests of justice. lA NO: 1 OF 2025 Petition under Section 15'l 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 order passed by the respondent no.1 Under Section 73 of the TGST and CGST Act, 2017 Date of Order 25-04- 2024 reference no.2D3604240562O2Q For the Year financial year 20'tB-19 pending disposal of writ petition. Counsel for the Petitioner: SRI GAJANAND CHAKRAVARTHY, REPRESENTING SRI UPADHYAY RAGHAVENDER Counsel for the Respondents: SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

The Court made the following: ORDER : I L

THE HONOURABLE SRI JUSTICE SUJOY PAUL A}{D THE HON,BLE DT. JUSTICE G. RADHA RANI WRIT PETITION No.l02l of 2o25 ORDER (per Hon'ble SP,J) Sri Gajanarrd Chakravarthy, learned counsel represents Sri Upadhyay Raghavender, learned counsel for the petitioner and Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, for the respondents. 2 Learned counsel for the petitioner seeks to withdraw this petition with the liberty to frle an appeal.

The other side has no objection 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 V.KAVITHA AS s ANT REGISTRAR //// ECTION OFFICER To, TJ BSR

One CC to Sri Upadhyay Raghavender, Advocate [OPUC]

Two CC to The Special GP for State Tax, High Court forthe State of Telangana, at Hyderabad[OUT]

Two CD Copies I I

HIGH COURT DATED:1010112025 ORDER il / iiffi 2025 ,/,i i {' \' t WP.No.1021 of 2025 DISMISSING THE WRIT PETITION AS WITHDRAWN WITHOUT COSTS OL I I I I r .:1 .ri,,:\

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.