Alokadci Holdings Pvt. Ltd Vs Commissioner of Central Tax (Telangana High Court)
The Telangana High Court considered a writ petition challenging an Order-in-Original dated 28.10.2025 passed by the Joint Commissioner of Central Tax, Medchal GST Commissionerate. The order imposed two penalties on the petitioner: ₹3,49,73,688/- for fraudulent availment of Input Tax Credit (ITC) without actual receipt of goods, and ₹3,50,19,797/- for passing on ITC through issuance of tax invoices without actual supply of goods. These penalties were imposed under Sections 122(1)(vii) and 122(1)(ii) read with Section 74 of the CGST/TGST Acts and Section 20 of the IGST Act.
The proceedings originated from a show cause notice dated 02.05.2025 issued by the same Joint Commissioner, alleging fraudulent ITC claims and issuance of fake invoices. The notice indicated violations of Section 16(2)(b) and Section 31 of the CGST Act and proposed penalties equivalent to the ITC amounts involved. Despite being granted multiple opportunities for personal hearing on 15.09.2025, 15.10.2025, and 27.10.2025, the petitioner neither responded nor participated in the proceedings. Consequently, the authority proceeded to confirm the demand and impose penalties.
Before the High Court, the petitioner challenged the jurisdiction of the proper officer to initiate and conclude the proceedings. It was argued that Circular No. 254/11/2025-GST dated 27.10.2025 conferred jurisdiction for the first time upon specified officers to pass orders under Sections 74A, 75(2), and 122 of the CGST Act. According to the petitioner, earlier Notification No. 2/2017 only conferred territorial jurisdiction and not adjudicatory authority for such penalties. The petitioner further contended that the circular could not be applied retrospectively.
