M/S. Rks Trading Company vs. The Deputy State Tax Officer
Facts
M/s. RKS Trading Company (the petitioner) filed a writ petition challenging the order dated 04.03.2025 passed by the Deputy State Tax Officer (respondent No. 1). The petitioner had received a show cause notice dated 27.02.2025 and submitted its objections/reply on 01.03.2025. Respondent No. 1, without assigning any reasons, rejected these objections through the impugned order. The petitioner's vehicle and goods were seized pursuant to the show cause notice. The petitioner sought the setting aside of the impugned order and directions for the release of the vehicle and goods.
Held
The Court held that the impugned order dated 04.03.2025, passed by the Deputy State Tax Officer, was not a reasoned order. This finding was based on the petitioner's submission that the order merely reproduced its objections without assigning any reasons for their rejection, a submission that was fairly conceded by the respondents. The Court relied on the Supreme Court's decision in Kranti Associates (P) Ltd. v. Masood Ahmed Khan, which emphasizes the necessity of assigning reasons in administrative, quasi-judicial, and judicial proceedings to ensure fairness, prevent arbitrariness, and facilitate judicial review. The Court found that the impugned order violated these principles. Consequently, the impugned order was set aside. The Court directed that if the petitioner prefers an application for the release of the vehicle and goods, respondent No. 1 shall consider and decide the application within three working days from the date of its filing. Liberty was reserved for the respondents to pass a fresh speaking order on the petitioner's objections.
Key Issues
1. Whether the impugned order dated 04.03.2025, passed by the Deputy State Tax Officer, is a speaking order, adhering to the principles of natural justice and statutory requirements under the GST Act, 2017? The petitioner argued that the order merely reproduced its objections without providing any reasons for their rejection, making it arbitrary and illegal. The petitioner contended that the absence of reasoning violates the principles of natural justice and the mandate of the GST Act, 2017. The respondents, through the Special Government Pleader, fairly conceded that the impugned order was not a reasoned order and therefore, it may be set aside.
Sections Cited
Section 129(e)
AI-generated summary — verify with the full judgment below
\-*1:- [ 3446 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Juri iction) FRIDAY, THE SEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTIGE RENUKA YARA WRIT PETITION NO:7083 0F 2025 Between: M/s. RKS Trading Company, 6-4-80' Adarsh Nagar' Kattedhan' Hyderabad'
Rep. by its Proprietrix Smt Sangeetha Keora' ...PETITIONER AND 1 The Deputy State Tax Officer, Raj endranagar-1 Circle' Rajendranagar' R'R Diskict 2 The Assistant Commissioner(ST), Rajendranagar-1 Circle' Raiendranagar' R.R District The State of Telangana, Rep by its Principal Secretary' Revenue (CT)
Department, Telangana Secretariat, HyderaDao 3 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in iiJlinJ"it tiled therewith' the High Court may be oleased to issue Wirt of 'lil;";;;;t or any other appropriate Writ or o1:-: o' ii;;,* j"ir"ring tn" action of the 1st respondent.in detaining the conveyance vide bearing No. GJ1sYY7i)d''k'"g ;ith ooods-(WANOL) and issuing notice in Form GST Mov 07 ,noer'sl"-Jlo=n-r ig(e) oitne iesr R"t' 2017 and demanding
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