Aarush Enterprises Vs Assistant Commissioner of Central Tax (Telangana High Court)
The writ petition challenged a show cause notice dated 19.09.2025 issued by the Central Tax authorities under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017 for the financial year 2021–22. The petitioner contended that the notice was impermissible as the State Tax authorities had already adjudicated proceedings arising out of the same transactions by an order-in-original dated 21.04.2025, imposing penalty under Section 122 of the CGST/TGST Act, against which an appeal was pending. It was argued that issuance of the Central show cause notice violated Section 6(2)(b) of the CGST Act due to overlapping jurisdiction and subject matter.
By an interim order dated 31.10.2025, the Court granted stay of the impugned show cause notice and sought instructions from the respondents. On 20.11.2025, the Court recorded that the Central show cause notice raised three issues: excess availment of input tax credit as per GSTR-3B vis-à-vis GSTR-2A, availing ITC on supplies from a supplier whose registration was retrospectively cancelled, and availment of blocked or ineligible ITC under Section 17(5). The Court also noted that the State Tax proceedings related to alleged issuance of fake invoices without underlying supply, culminating in a penalty order dated 21.04.2025, which was under appeal.
