M/S. Abhishek Trading Co. vs. Union Of INDIA
Facts
The petitioner, M/s. Abhishek Trading Co., filed a Writ Petition before the Telangana High Court challenging a communication dated November 17, 2021, issued by the Deputy Commissioner (ST)-II, Enforcement Wing. The communication advised the petitioner to pay GST of Rs. 1,06,07,746/- along with interest and penalty. The petitioner contended that this demand was made without completing the investigation and without any ascertainment of the tax liability, rendering the action illegal, arbitrary, and ultra vires the Telangana Goods and Services Tax Act, 2017. The petitioner sought a direction to withdraw the impugned communication and to restrain the respondents from taking coercive steps until the investigation was complete and any tax demand was ascertained through due process. An interim application was also filed seeking a stay on the impugned communication.
Held
The Court did not decide the merits of the case. The learned counsel for the petitioner informed the Court that the petitioner wished to avail of an alternative remedy and therefore sought to withdraw the Writ Petition. Consequently, the Court disposed of the Writ Petition as withdrawn. No specific findings were made on the legality or arbitrariness of the impugned communication or the tax demand. The Court did not delve into the provisions of the Telangana Goods and Services Tax Act, 2017, as the matter was settled by withdrawal. No alternative remedy was specified or discussed. The operative direction was to dispose of the petition as withdrawn.
Key Issues
1. Whether the action of the respondents in advising the petitioner to pay GST of Rs. 1,06,07,746/- along with interest and penalty, vide the impugned communication dated November 17, 2021, without completing the investigation and without any ascertainment of tax liability, is illegal, arbitrary, and ultra vires the Telangana Goods and Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that the demand for tax, interest, and penalty was premature and illegal as it was made without concluding the investigation and properly ascertaining the tax liability. They sought to quash the communication and prevent coercive recovery measures. Respondents' Contention: The judgment does not record any specific contentions from the respondents. However, the context implies they were defending their action of issuing the communication. The petitioner's counsel ultimately chose to withdraw the petition.
AI-generated summary — verify with the full judgment below
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) TUE AY, THE FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY TWO PRESE NT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE SMT JUSTICE P.SREE SUDHA WRIT PETITION NO: 34459 oF 2021 Between: M/s. Abhishek Trading Co., A proprietorship firm having its office at Plot No 37, Sy' No' iii, seiE - Kattedai Hydtlra6ad-500077 Represented through its Proprietor Shri Abhishekh. ..PEr[loNER AND Union of lndia, Ministry of Finance Represented through its Secretary Jeevan Deep Building, Sansad l\,4arg, New Delhi, 1'10001.
State of Telaigana, t\,4inistryof Finance Represented through its Secretary 4' Old Bowenpally Cross Rd, Sri Sai Enclave, Old Bowenpally, Secunderabad, Telangana 50001 1 .
The D"eputy Commissioner (ST)-11,, Enforcement Wing 3rd Floor, Office of Commissioner of State Tax, CT Complex Besides Gruhakapla, Mj Road'
Nampally, Hyderabad -500001 ...RESPONDENTS 1 2 3 PetitionUnderArticle226oftheConstitutionoflndiaprayingthatinthe circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an appropriate writ, order, or direction, preferably in the nature of a writ
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.