M/S. Abhishek Trading Co vs. Union Of INDIA, And 2 Others
Facts
The petitioner, 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. This communication advised the petitioner to pay GST of Rs. 6,23,85,376/- 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 and arbitrary. The petitioner sought a direction to withdraw the impugned communication and to restrain the respondents from taking coercive steps until the investigation was concluded and tax demand ascertained through due process. An interim application was also filed seeking a stay on the impugned communication and a direction against coercive steps.
Held
The Court did not decide on 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 Consequently, the Court disposed of the writ petition as withdrawn.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 order was made as to costs. Any pending miscellaneous applications were also closed.
Key Issues
1. Whether the action of the respondents in demanding GST, interest, and penalty of Rs. 6,23,85,376/- from the petitioner vide 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 was premature and illegal as it was made without a proper investigation and ascertainment of the actual tax due. They sought to declare the action illegal and sought a stay on coercive recovery measures. Respondents' Contention: The judgment does not record any specific arguments made by the respondents. However, the presence of the Deputy Commissioner (ST)-II, Enforcement Wing, as a respondent indicates their role in issuing the impugned communication.
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 Between: lV/s. Abhishek Trading Co, A proprietorship firm having its office at Plot No. 37, Sy. No. 48, SEIE Kattedan, Hyderabad-500077 Represented through its Proprietor Shri Abhishekh ..PETITIONER AND 1. Union of lndia, tVlinistry of Finance Represented through its Secretary Jeevan Deep Building, Sansad lvlarg, New Delhi, 1 10001 .
State of Telangana, lVinistry of Finance Represented through its Secretary 4, Old Bowenpally Cross Rd, Sri Sai Enclave, Old Bowenpally, Secunderabad, Telangana 50001 1 .
The Deputy Commissioner (ST)-ll, Enforcement Wing 3rd Floor, Office of Commissioner of State Tax, CT Complex Besides Gruhakapla, MJ Road, Nampally, Hyderabad - 500001. .,.RESPONDENTS Petition Under Article 226 ol the Constitution of lndia praying that in the 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 of lMandamus declaring the action of the Respondents in advising the Petitioner to pay the amount tax of Rs. 6,
The judgment continues below.
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