M/S. Azmir Builders Private Limited vs. The State Of Telangana - Telangana High Court, 25 August 2026

Cause title — parties, addresses and appearances

[ 34881 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY FIFTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WP.No.17216 OF 2026 Between: M/s. Azmir Builders Private Limited, Rep by its Authorized Signatory Chiranjeevi Akula, aged 40 Years, Ground Floor, 10-1 1-175113, Valmiki Nagar, Fathenagar, Balanagar, Hyderabad, Telangana, 500018. ...PETITIONER AND 1. The State of Telangana, Represented by its Principal Secretary, Commercial Taxes, Secretariat, Hyderabad. 2. The Commissioner of the Commercial Taxes Department,, Telangana State, Commercial Taxes Complex, Nampally, Hyderabad-500 001 3. The Assistant Commissioner, TG031 , Admn.State. ...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 direction or Orders, more particularly in the nature of a writ of Mandamus or any other appropriate Writ, declaring that blocking of lnput Tax Credit of the Petitioner to the tune of Rs. 14,04,05,6161 showing in electronic credit ledger of the Petitioner at GSTN portal as void ab-initio, without jurisdiction, illegal, arbitrary, violation of principles of natural justice and principle of audi alteram partem, and violation of Article 1 9(1 Xg) and 3004 of the Petitioner. l.A. NO: 1OF 2026 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay by lifting the blockage, of ITC to allow the operation of Electronic Credit Ledger and stay the action of Ressondent pending disposal of this writ petition. Counsel for the Petilioner: MR. S.V. PRANAV RAM Counsel for the Resl:ondents: MR. SWAROOP OORILLA, SPECIAL GP FOR STATE TAX

The Court made the following: ORDER

IN THE HIGH COURT FOR TTIE STATE OF TELANGANA AT HYDERABAD THE HON'BLE THE CHIEF JUS'ITCE SRI APARESH KUMAR SINGH AND THE HON 'BLB SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No.l72l6 of 2026 DATED: 25.08.2026 Between: M/s. Azmir Builders Private Lirnited ... Petitioner AND The State of Telangana, Represented by i1s Principal Secretary. Cornmerc ia I laxes. Sccretariat. Hyderabad & 2 others Respondents ORDER: Mr. S.V.Pranav Rani. learned counscl appcars fbr thc petitioner. Mr. Su'aroop Oorilla. learncd Special Governtnent Pleader lbr State 'l'ax. appears fbr the respondents. 2. 'Ihis writ petition prel'ered in the year 2026 assailed the blocking of ITC of Rs.14.04.05.616/- since l'l .03.2025 invoking I{ule 86A of the ccntral Goods and Services Tax Rules. 2017 (hereinafter referred to as 'the CGST Rules') allegedly vr ithout an1 show cause notice or reasons. 3. 'l he Cientral Tax authoritl' was not inlpleaded as a party in thc rvrit pctition ['et it be irnpleaded through the Superintendent. CGST, Jubitee Hills-I. Mr. Dominic

- Irernandes. learned sienior Standing counsel fbr central Board ol lndirect Taxes and customs (cBIC) has accepted noticc on behalf of'the nervry added respondent. such correction be carried by learned counsel ibr the petitioner during the course of the day.

Learned Special Government pleader tbr Statc Tax. on written instructions furnished bl. Assistant crornrnissi.ncr (S l ). I.'atehnagar circle. Malka.igiri Dir,isron, has submitted that on verification. it camc to light that the petitioner is registered under central .iuri iction. It has declared a tax liability ol Rs.7,02,0,r,9r4l- and an equivalent arrount c.vering ccS'f and SCiSl for the tax perio<1 t ebruary, 2025 in its GSTR returns. but it r,r.as tbund that therc are no in,,vard transactious as per the e-way Bill portal fbr the n'r,rnth of FebrLrarr. 1025. Theretbre. the Electronic credit I-edger r.vas blocked under [lule 86,4 ol the cGS I Rules and rvas inlonned to the central aulhoritr to takc nece ssar,r' action. SLrhsequ"entl-r. the tax pa1,er.s (isl.rcgistration has been cancelled with eff'ect trom24.l0.2o2l by the proper officer, central .iuri iction, by order in Form GS'i REG-19 dared l2.l L2025. inter a/ia on grounds that petitioner does not conduct an1 busincss liorn declared place ol business or place of br,rsiness not tbund afler veritlcation b' the Anti- l-.r,as ion. Hl,derabad GST cornmissionerate. l.eamed Special Go.iernment pleader fbr State Tax subrrits that once the GS.l. registration is cancellcd. the question of unblocking of the Electronic credit Ledger docs not arise. 'l hc fact relating to canceilation ofGST registration was not brousht to the notice of the Court in the present writ petition. 5' Learned couns.l lbr the petitioner. upon being asked, does not dispute that the proper course nor" fbr the petitioner is to seek revocation ol the cancellation of GST

!E3t7 rcgistration belore the corrpetent ar,rthoritl , []e sceks some time to lilc application as the period prescribed under Rule 23 of the CGS-I' Rules to pref'er such an application may have expired b.v now J

Be that as it rray. since the (iS l' regisrratron ol'thc petrtioncr stands cancelled by the Central Tax authorities, the grievance relating to the blocking ol the Electronrc Credit Ledger by the State 'lax authorities under Rule 86,4. of the CGS'| Rules cannot be interfered ,uvith L Al this stage. petitioner is granted liberly to prefer an application fbr revocation olcancellation of GST Registration Certificate, in physical form, belore the competent aulhorit)'in terms olRule 23 of the CCS'l'Rirles. Il-such an application is rnadc rvithin a period of two weeks. the cornpetent authorit]- rvould consider it. in accordance rvith larv. w'ithin a period of three weeks thereafter. It would be open lor the petitioner to seek unblocking of the Electronic Credit Ledger depending upon the outcome ol the revocaliou applicalion 8. 'l'he instant Writ Petition is disposed ol in the aforesaid manner. There shall be no order as to costs Miscellancous applicatrons. i1-any pending. shall stand closcd. U.SUDHA ASSISTANT REGIS //// SEC ON OFFICER To, '1 . The Principal Secretary, Commercial Taxes, Secretariat, State of Telangana, Hyderabad.

The Commissioner of the Commercial Taxes Department,, Telangana State, Commercial Taxes Complex, Nampally, Hyderabad-500 001

The Assistant Commissioner, TG031, Admn.State.

One CC to MR. S.V. PRANAV RAM Advocate tOpUCl

Two CCs to SRI SWAROOP OORILLA, SPECIAL GP FOR STATE TAX, High Court of Telangana at Hyderabad [OUT]

Two CD Copies @

HIGH COUR'' DATED: 2510812026 ORDER WP.No.172'l1t OF 2026 DISPOSING IOF THE WRIT PETITION WITHOUT COSTS E g 51416: 1 o -(t t.'.'1..,.2 oo 2 3 SEP 2026 ,zo r\ , -t 4 q 1ta G u,in4