M/S.Ta Infra Projects Limited vs. The Assistant Commissioner Of State Tax

WP/14820/2023HC TelanganaGSTCNR HBHC01026725202315 June 2023Bench: N.TUKARAMJI,UJJAL BHUYAN6 pages

For Petitioner: SRl. SHAIK JEELANI BASHAFor Respondent: SRI L VENKATESWAR RAO SPL., GP FOR GP FOR COMMERCIAL TAX

AI SummaryRemanded

Facts

M/s. TA Infra Projects Limited (Petitioner) filed a writ petition challenging the order dated 28.02.2023 passed by the Assistant Commissioner of State Tax (Respondent No. 1). This order rejected the petitioner's claim for transitional credit. The petitioner had received a show cause notice on 23.02.2023, granting three days to submit objections. The petitioner requested an adjournment until 10.03.2023, which was denied. Subsequently, the petitioner filed a written objection on 27.02.2023. The impugned order was passed on 28.02.2023, rejecting the claim for transitional credit. The petitioner contended that the order was passed hastily without adequate opportunity to present their case.

Held

The High Court held that the impugned order dated 28.02.2023, passed by the Assistant Commissioner of State Tax, was made hastily. The Court found that the petitioner was not granted adequate and reasonable opportunity to file a comprehensive written objection and subsequently an opportunity of hearing. The Court noted that the respondent's assertion in the impugned order regarding the seven-day period for filing objections was factually incorrect. Therefore, the Court set aside the impugned order and remanded the matter back to the Assistant Commissioner of State Tax for a fresh decision. The petitioner was granted fifteen days to file additional written objections, after which the respondent was directed to provide an opportunity of hearing before passing an appropriate order in accordance with the law. The Court expressly left no issue undecided.

Key Issues

1. Whether the order dated 28.02.2023 passed by the Assistant Commissioner of State Tax, rejecting the petitioner's claim for transitional relief, was passed in violation of the principles of natural justice and without providing adequate opportunity for hearing, as contended by the petitioner? Petitioner's Arguments: The petitioner argued that the impugned order was arbitrary, contrary to the provisions of the CGST/SGST Act, 2017, and passed without jurisdiction and in violation of natural justice. They specifically pointed out that the show cause notice dated 23.02.2023 granted three days for objections, and their request for an adjournment was rejected. Despite filing objections on 27.02.2023, the final order was passed on 28.02.2023, indicating a hasty decision-making process. They relied on the fact that the respondent's claim of granting seven days in the show cause notice was factually incorrect. Revenue's Arguments: The judgment does not record any specific arguments made by the respondents.

Sections Cited

Rule 121, Section 73, Section 74

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3311 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY ,THE FIFTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY THREE THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 14820 OF 2023 Between M/s.TA lnfra Projects Limited,, (Formerly known as Taherali lndustries and Projects Limited) D.No.7-1-58, Flat No.10l, 1 St Floor, Amrutha Business Complex, Ameerpet, Hyderabad - 500 016. Rep. by its Managing Director Mr.M.M.Rehman. ...PETITIONER AND 1. The Assistant Commissioner of State Tax, Sanathnagar Circle, Hyderabad. 2. The Superintendent, lmbrahimpatnam GST Range, lmbrahimpatnam, Rangareddy, Hyderabad. 3. The State of Telangana, Rep. by its Principal Secretary, Revenue (CT) Department, Telangana Secretariat, Hyderabad ...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 Wirt of Mandamus or any other appropriate Writ or Order or Direction declaring the action of the '1 st Respondent in passing the Proceedings dated 28.02.2023, without considering the explanation of the Petitioner daled 27 .O2.2O23, as arbitrary, contrary to provisions of the CGST / SGCT Acl, 2017, without jurisdiction and in violation of principles of natural justice and Rule of law and consequently set said the Proceedings of the 1St Respondent in rejecting the claim of Transitional relief, as null and void. I I PRESENT I I 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 suspend the operation of Proceedings of the '1st respondent dated 28.02.2023, pending disposal of the above Writ Petition, as otherwise, the Petitioner will e put to severe loss and hardship. Counsel for the Petitioner : SRl. SHAIK JEELANI BASHA Counsel for the Respondent Nos.1 & 3 : SRI L VENKATESWAR RAO SPL. GP FOR GP FOR COMMERCIAL TAX Counsel for the Respondent No.2 : Ms SAPNA REDDY

,/ lA NO: 1 OF 2023

THE HON'BLE THE CHIEF JUSTICE UJJAL BHIIYAN AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No. 14820 of 2o23 ORDER: (Per the Hofl'ble the Chief Justice Ujjat Bhugan) Heard Mr. Shaik Jeelani Basha, learned counsel for the petitioner; Mr. L.Venkateswar Rao, learned Special Standing Counsel for Commercial Taxes appearing for respondents No.1 and 3; and Ms. B.Sapna Reddy, learned counsel for respondent No.2. 2. This petition has been filed under Article 226 of the Constitution of India assailing the legality and validity of the order dated 28.O2.2023 passed by respondent No.1. 3. By the aforesaid order dated 28.02.2023, prayer of the petitioner for allowing transitional credit has been rejected under Rule l2l of the Central Goods and Services Tax Rules, 2Ol7 read with Sections 73 and 74 of tlle Centra-l Goods and Services Tax Act, 2017. 4. Learned counsel for the petitioner has drawn the attention of the court to the show cause notice dated

) 23.02.2023 whereby respondent No.1 granted three days time to the petitioner to submit the written objection, if any. He submits that on 24.02.2023 petitioner hacl sought for time till 10.03.2023 for filing written objection. When first respondent rejected the request of the petitioner for adjournment, petitioner hurriedly filed the written objection rvith whatever materia-ls that were available on 27.O2.2O23. In the impugned order, respondent No.1 has stated that as per show cause notice dated 24.02.2023, he had granted seven days time to the petitioner to filc written objection, if any, which is factually not correct. After recording the objection filed by the petitioner on 27.02.2023, respondent No.l rejected the claim of the petitioner for transitional credit vide the order dated 28,O2.2023 i.e., within a span of five days.

Without entering into the merit, we are of the view that the impugned order was passed very hastily. An adequate and reasonable opportunity ought to have been granted to the petitioner to file its comprehensivr: written !......- I I I I I

J objection and thereafter to have provided an opportunity of hearing to the petitioner.

We therefore set aside the impugned order dated 28.02.2023 and remand the matter back to respondent No.1 for a fresh decision in accordance with law. It would be open to the petitioner to lile additional written objection, if any, within fifteen days from today, whereafter respondent No.1 shall provide an opportunity of hearing to the petitioner and then pass an appropriate order in accordance with law. 7 . Writ petition is accordingly allowed. Miscellaneous applications pending, if any, shall stand closed. However, there sha-ll be no order as to costs. //// so/- K. AMMAJI ASSISTANT REGISTFAR \l SECTION OFFICER To 1. The Assistant Commissioner of State Tax' 2. fhe Superintendent, lmbrahimpatnam Sanathnagar Circle' HYderabad' GST Range, lmbrahimPatnam, a 4 o l l RangareddY, HYderabad' . The Principal Secretary, Revenue (CT) Department'State of Telangana' Telangana Secretariat, Hyderabad o;; ic i; sir. sHnrk JEELANI BASHA' Advocate'[oPUCl . Two CCs to Gp FoR ldH,ffrrreiCrnL TAX,High Court for the State of Telangana at HYderabad [OUT] o;; ic i; rv. snpr.rn REDDY, Advocate'[oPuc]

Two CD CoPies SB GJP .\.y

I I HIGH COURT DATED:1510612023 ORDER WP.No.14820 of 2023 9? ALLOWING THE WRIT PETITION WITHOUT COSTS JU\\ Nil r.i r, i: 1 3 r1 ,.>' * r..\ o* \ ,I 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.