Prg Buildcon INDIA Private Limited vs. Principal Commissioner Of Central Tax

WP/1221/2024HC TelanganaGSTCNR HBHC01002259202412 January 2024Bench: P.SAM KOSHY,N.TUKARAMJI5 pages

For Petitioner: SRI KOPAL SHARRAFFor Respondent: M/s. DOMINtC FERNANDES (SR. SC for CBIC)

AI SummaryRemanded

Facts

The petitioner, PRG Buildcon India Private Limited, filed a Writ Petition before the Telangana High Court challenging an Order-in-Original dated 29.09.2023, which was received on 20.10.2023. The petitioner also challenged an Intimation under Form GST DRC-01A and a Show Cause Notice. The impugned actions were taken by various authorities under the Central Goods and Services Tax (CGST) Act, 2017. The petitioner sought to declare these actions as without jurisdiction, arbitrary, illegal, unconstitutional, and in violation of the CGST Act and settled principles of law. They further prayed for setting aside the Order-in-Original.

Held

The High Court held that the Writ Petition was not sustainable because the petitioner had an alternative efficacious statutory remedy available under Section 107 of the Central Goods and Services Tax Act, 2017. The Court was of the considered opinion that the writ jurisdiction should not be invoked when a clear statutory path for redressal exists. Therefore, the Court disposed of the Writ Petition, explicitly reserving the right of the petitioner to avail the statutory remedy of appeal. No order as to costs was made, and all pending miscellaneous petitions were closed.

Key Issues

1. Whether the Writ Petition is maintainable in light of the availability of an alternative efficacious statutory remedy under Section 107 of the Central Goods and Services Tax Act, 2017? The petitioner contended that the impugned actions were without jurisdiction and illegal, implying that a statutory appeal might not be an adequate remedy. The respondents, represented by the Senior Standing Counsel for CBIC, likely argued for the dismissal of the writ petition on the grounds of alternative remedy. The Court had to decide if the extraordinary jurisdiction under Article 226 of the Constitution was warranted given the statutory appeal provision.

Sections Cited

Section 107

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 337s ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWELFTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 1221 OF 2024 Between: AND 1 PRG Buildcon lndia Private Limited, Having its registered office at, Plot No. 213, Prathima Building, First Floor, Road No. 1, Film Nagar, Jubilee Hills, Hyderabad - 500 096. Represented by its Authorized Signatory, Sunil Bontha, S/o. Damodhar Rao Bontha, Aged about 48 years. ...PETITIONER 2 Principal Commissioner of Central Tax, Hyderabad GST Commissionerate, GST Bhawan, LB Stadium Road, Basheerbagh, Hyderabad - 500 004. Office of the Commissioner of Customs and GST, Hyderabad Audit-l Commissionerate 1st floor, Elegant Maharaja, Ramanthapur, Hyderabad - 500 0'13. Additional Commissioner, Office of the Commissioner of Customs and GST, Hyderabad Audit-l Commissionerate 1st floor, Elegant Maharaja, Ramanthapur, Hyderabad - 500 013 Assistant Commissioner (Circle-4), Office of the Commissioner of Customs and GST, Hyderabad Audit-l Commissionerate '1st floor, Elegant Maharaja, Ramanthapur, Hyderabad - 500 0'13. Additional Commissioner of Central Tax, Hyderabad GST Commissionerate, GST Bhavan, Opp L.B. Stadium, Basheerbagh, Hyderabad - 500 001. Superintendent of Central Tax, Selective Audit Group-41 , Office of the Audit-l Co m m issio ne rate, Ramanthapur, Hyderabad. Additional Director (DGGI), Hyderabad Zonal Unit, Hyderabad. Superintendent (Anti Evasion), Hyderabad GST Commissionerate, GST Bhbwan, LB Stadium Road, Basheerbagh, Hyderabad - 500 004. J 4 5 6 7 8 ...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 or an order or a direction, more particularly one in the nature of Writ of ltrlandamus by declarrng the actions of Respondents in passing the Order-ln-Original bearing No. 5312022-23-Adjn-(ADC)-HyD-GST dated 29logl2o23 (received on 2011012023) passed by the Respondent No. 5 (hereinafter referred to as lmpugned Order), lntimation under Form GST DRC- 01A under rule 142 (1A) of the CGST Rules bearing no. INV/DGGI/HZUlcST/38/2018-19 issued by Respondent No. 7 (herein after referred to as "lmpugned lntimation") & Show Cause notice bearing no. INNiDGGI/HZUlcsr/38/201 8- 1916948 dated 31 10312022 issued by Respondent No. 7 (hereinafter referred to as "lmpugned Notice") as being without jurisdiction, arbitrary, illegal, unco nstitutiona I and in violation of the provisions of the CGST Act,2017 and settled principles of law and consequenfly set aside the order-ln- Original bearing No. 53/ 2022-23-Adin-(ADC)-HyD-GST dated 29tOgt2O2A (received on 2O11012023) passed by the Respondent No. S. lA NO: 1 OF 2024 Petition under Section '1 51 CpC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the Order-ln-Original bearing No. 53t2022-23-Adjn- (ADC)-HYD-GST dated 29109-2023 (received on 2Ot1Ol2O23) passed by the Respondenl No. 5. Counsel for the Petitioner: SRI KOPAL SHARRAF Counsel for the Respondents: M/s. DOMINtC FERNANDES (SR. SC for CBIC)

The Court made the following: ORDER

:./ To, THE HONOURABLE SRI JUSTICE P.SAM KOSI{Y AND THE HONOURABLE SRI JUSTICE N.TUI(ARAMJI WRIT PETITION No.1221 OF 2024 ORDER:@er Hon'ble Si Justice P.SAM KOSHY) The present is a Writ Petition assailing the order-in- original dated 29.09.2023 passed by respondent No.1, served upon the petitioner on 20.1O.2023. 2. At the outset, we a-re of the considered opinion that the Writ Petition would not be sustainable for the reason that the petitioner has al a-lternative efficacious statutory remedy under Section 107 of the Central Goods and Services ^fax Act, 2017

Therefore, the Writ Petition is disposed of reserving the right of the petitioner to avail the statutory remedy of appeal. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. . T. JAYASREE //II ASSISTANT R GISTRAR SECTION FFICER 1 Principal commissioner of centrar rax, Hyderabad GST commissionerare, GST Bhawan, LB Stadium Ro1d, Ba;h;;ida;6]HvoiLoro _ soo oo4. office of the Commissioneror Cusroms-;;; 6di,',H;;rabad Audit_l ff5rJ!5.ionurrte 1 st ftoor, eregani r/a hai;j"]ElrJ,iiirprr, Hydeiabad _ Additionar commissioner, office of the commissioner of customs and GST. Hyderabad Audit-t Commissio^nerate r st frooi, E'iela]rt ufrnrr#," q'| '|u \r\,, ' Ramanthapur, Hyderabad - 500 01j -' -vr ! qrvvur rL r\ 2 J l

Assislant commissioner (circle-4), office of the commissioner of customs 3119-Sl I !.v. 9 q ra ba d A u d it- r C o m m i s s i o n e ra te 1 sr fl o o r, E I e si ni N,a;di, j i, Hamanthapur, Hyderabad - 500 013. 5. Additional commissioner of centrar rax, Hyderabad GST commissionerate, ^ 9ST Qh.ava1, Opp L B. Stadium, Basheerbiqh, HvderaOaO _ SO0 -00i. - -'-' 6. superintendent of central rax, selective Audit Group-4.1, omle oiirre nuuit-r Commissionerate, Ramanthaour. Hvderabad -'-- I A99ligqrl Director (pgct), Hideratiao zonat unit, Hyderabad. u :yq:l!u,nge1j (Anti Evasion), Hyderabad GST Conimissionerate, GST - trnawan, Lts Stadium Road, Basheerbagh, Hyderabad - 500 004. 9. Qne CC to SRt KOPAL SHARRAF, nOv"oc'atei iOCUCt 10.one cc to sRt DotvtNtc FERNANDES (SR. 5-c roibercl topucl 1'1 .Two CD Copies BN GJ AN<

HIGH COURT DATED:1210112024 ORDER WP.No.1221 of 2024 lo iU 17 FEB ?024 * oFspr- cHgO \t t I o ,' ,,...-;>. " r-';.i\ i- ri .'- i! ?l: k i .') * DISPOSING OF THE WRIT PETTTION WITHOUT COSTS I o I

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.