Cargomen Logistics India Private Limited Vs Additional Commissioner of Central Tax (Telangana High Court)
In Cargomen Logistics India Private Limited Vs Additional Commissioner of Central Tax, the Telangana High Court dismissed a writ petition challenging an Order-in-Original passed under Section 74 of the CGST Act read with Section 20 of the IGST Act, along with the consequential DRC-07 summary order. The petitioner had sought quashing of the order dated 20.11.2025 to the extent it confirmed a GST demand of Rs.7,02,03,972/- together with interest and an equivalent penalty for the period covering financial years 2018-19 to 2023-24. The petitioner alleged that the order was without jurisdiction, arbitrary, illegal, contrary to the CGST Act and Rules, and passed in violation of principles of natural justice.
The petitioner claimed to provide transportation of goods by aircraft services exempted from GST under specified entries of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. According to the petitioner, earlier final audit reports issued on 29.03.2022 and 05.01.2024 for the years 2017-18 to 2021-22 had not raised objections regarding the exemption claim. Subsequently, in January 2025, fresh audit proceedings were initiated for financial years 2022-23 and 2023-24 through Form GST ADT-01 issued by the Assistant Commissioner (Audit). A spot memo dated 07.03.2025 recorded discrepancies observed during audit proceedings.
