A.S.Traders Vs Deputy Commissioner (Anti Evasion) (Telangana High Court)
Telangana High Court – Section 16(2)(c) Vires Challenge Rejected: M/s. A.S. Traders Granted Liberty to File GST Appeal | W.P. No. 5482 of 2026 Disposed 24.02.2026
Telangana HC Rejects Vires Challenge to Section 16(2)(c); Permits Delayed GST Appeal with Condonation Relief – M/s. A.S. Traders
Introduction
Challenges to Section 16(2)(c) of the GST law—especially in cases involving denial of Input Tax Credit (ITC)—have become increasingly common. Taxpayers often invoke constitutional grounds to contest tax demands when statutory remedies are time-barred or procedurally difficult.
In a recent ruling dated 24.02.2026, the Telangana High Court dealt with one such attempt by M/s. A.S. Traders. The Court declined to entertain the vires challenge and instead directed the petitioner to pursue the appellate remedy, reinforcing that writ jurisdiction cannot be used to bypass statutory timelines.
Case Background
The petitioner challenged:
- Order-in-Original dated 28.08.2024
- Along with a constitutional challenge to Section 16(2)(c) of CGST/SGST Acts
Key aspects:
- The writ petition was filed after a significant delay (about 1.5 years)
- The challenge to vires appeared to be raised primarily to overcome limitation issues
- The petitioner had not pursued the statutory appeal within time
Key Legal Issue
Whether the High Court should:
- Entertain a challenge to the vires of Section 16(2)(c), and
- Allow writ jurisdiction to be used as a substitute for delayed statutory appeal
Arguments Presented
