Case Law Details
Shri Sharada Iron and Steel Private Limited Vs Deputy Commissioner STU-1 (Telangana High Court)
Telangana High Court Allows Taxpayer to Seek Rectification of Conflicting GST Orders Passed for Same Tax Period Dual Proceedings for Identical Tax Period Questioned | Liberty Granted Under Section 161 of the GST Act |
The High Court for the State of Telangana in M/s. Shri Sharada Iron and Steel Private Limited v. Deputy Commissioner STU-1, Saroornagar Division, Hyderabad & Others granted liberty to the petitioner to seek rectification of two separate GST orders passed by different authorities relating to the very same tax period.
The Division Bench comprising Aparesh Kumar Singh and G.M. Mohiuddin observed that the petitioner may approach the competent authority under Section 161 of the Goods and Services Tax Act, 2017 for rectification of the impugned orders dated 30.12.2025 and 31.12.2025.
Introduction
Under the GST framework, proceedings concerning a particular tax period are expected to attain certainty and consistency. However, disputes occasionally arise where multiple authorities issue separate orders covering the same assessment period, creating confusion and procedural hardship for taxpayers.
Section 161 of the Goods and Services Tax Act, 2017 empowers tax authorities to rectify errors apparent on the face of record. The provision acts as an important corrective mechanism where inconsistencies, duplications, or mistakes emerge in tax proceedings.
In the present case, the Telangana High Court addressed a peculiar situation where two separate authorities issued orders concerning the same tax period despite earlier proceedings having already been dropped by another authority.
Case Background
The petitioner, M/s. Shri Sharada Iron and Steel Private Limited, approached the Telangana High Court challenging:
- Order dated 30.12.2025;
- Order dated 31.12.2025; and
- The continuation of proceedings relating to the tax period from April 2021 to March 2022 despite earlier closure of proceedings.
The petitioner contended that:
- respondent No.2 had already dropped proceedings by order dated 15.03.2024;
- thereafter, respondent Nos.1 and 3 passed separate impugned orders for the same tax period;
- the concerned authorities failed to consider the circular dated 14.10.2025 issued by respondent No.4; and
- the petitioner was left without clarity regarding the appropriate forum for seeking correction of the conflicting orders.
The matter was therefore brought before the High Court seeking appropriate relief.
Key Legal Issue
The principal issue before the Court was:
Whether the taxpayer could seek rectification under Section 161 of the GST Act where multiple authorities had passed separate orders relating to the same tax period despite earlier proceedings having been dropped?
A related procedural issue concerned identifying the proper authority before whom the taxpayer should pursue rectification.
Proceedings Before the Court
Petitioner’s Submissions
The petitioner argued that:
- both impugned orders related to the identical tax period from April 2021 to March 2022;
- proceedings on the same issue had already been dropped earlier by respondent No.2 through order dated 15.03.2024;
- the authorities failed to take note of the circular dated 14.10.2025;
- contradictory proceedings by different authorities caused serious prejudice; and
- the petitioner required clarification regarding the proper authority for rectification under Section 161.
Respondents’ Submissions
The learned Assistant Government Pleader appearing for the State Tax authorities, on instructions, submitted that:
- the petitioner could approach respondent No.1, namely the Deputy Commissioner STU-1, Saroornagar Division, Hyderabad;
- an application under Section 161 of the GST Act could be filed before the said authority; and
- the competent authority would consider the rectification request in accordance with law.
Court’s Observations
The Division Bench took note of the grievance that:
- two separate impugned orders had been issued for the same tax period;
- earlier proceedings concerning the issue had already been dropped by another authority; and
- the petitioner sought an effective procedural remedy for correction of the anomaly.
The Court accepted the submission of the State Tax authorities that respondent No.1 would be the proper authority to examine the rectification request under Section 161 of the GST Act.
The Bench therefore considered it appropriate to grant liberty to the petitioner to file a rectification application.
Final Directions Issued by the High Court
The Telangana High Court disposed of the writ petition with the following directions:
- the petitioner was granted liberty to file an application for rectification under Section 161 of the GST Act;
- such application could cover both impugned orders dated 30.12.2025 and 31.12.2025;
- the application must be filed within two weeks;
- respondent No.1 was directed to consider the application in accordance with law;
- an opportunity of hearing must be provided to the petitioner; and
- the authority was directed to pass a decision within three weeks from the date of filing of the application.
The Court also ordered closure of all pending miscellaneous applications without any order as to costs. Author’s Analysis
1. Section 161 Recognized as an Effective Corrective Remedy
The judgment reinforces the importance of Section 161 of the GST Act as a mechanism to rectify procedural inconsistencies and apparent errors arising from overlapping proceedings.
2. Duplicate Proceedings for Same Tax Period Can Be Judicially Corrected
The case highlights judicial concern where multiple authorities initiate or continue proceedings concerning the same assessment period despite earlier closure of proceedings.
Such duplication creates uncertainty and administrative hardship for taxpayers.
3. Circulars Issued by Department Must Be Properly Considered
The petitioner specifically alleged non-consideration of the circular dated 14.10.2025. Though the Court did not adjudicate the merits of the circular, the order underscores the expectation that departmental authorities must take binding administrative instructions into account.
4. High Court Favoured Procedural Resolution Instead of Immediate Adjudication
Rather than directly deciding the merits of the conflicting orders, the Court adopted a practical approach by permitting statutory rectification proceedings before the competent authority.
This reflects judicial preference for allowing administrative authorities to correct procedural errors at the departmental level whenever feasible.
5. Timelines Imposed to Ensure Expeditious Disposal
The Court fixed strict timelines both for filing the rectification application and for disposal by the authority. Such directions are significant in GST matters where prolonged uncertainty may adversely affect business operations and compliance obligations.
Conclusion
The Telangana High Court’s ruling in M/s. Shri Sharada Iron and Steel Private Limited v. Deputy Commissioner STU-1, Saroornagar Division, Hyderabad & Others reiterates the availability of rectification under Section 161 of the GST Act in situations involving overlapping or conflicting proceedings.
By permitting the taxpayer to approach the competent authority for rectification of two separate orders concerning the same tax period, the Court ensured that procedural anomalies could be addressed through an effective statutory mechanism. The judgment serves as an important reminder that GST authorities must maintain consistency in adjudication proceedings and avoid duplication of actions relating to identical tax periods.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Sri K.P. Amarnath Reddy, learned counsel appears for petitioner.
Sri K. Sai Akarsh, learned Assistant Government Pleader appears for Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, for respondents.
2. The grievance of the petitioner is captured in the order dated 23.01.2026 which reads as under:
“Learned counsel for the petitioner submits that both the impugned orders dated 30.12.2025 and 31.12.2025 relate to the same tax period from April, 2021 to March, 2022, which have been issued by respondent Nos.1 and 3 respectively in respect of an issue where already respondent No.2 had dropped the proceedings by order dated 15.03.2024 (Annexure-P3). The concerned respondents have not taken into consideration the circular dated 14.10.2025 issued by respondent No.4. Petitioner is at a loss as to where to approach for seeking rectification of the impugned orders passed by two separate authorities for the same tax period under Section 161 of the Goods and Service Tax Act, 2017.”
3. Learned counsel for the State Tax, on instructions, submits that the petitioner should approach respondent No.1, Deputy Commissioner STU-1, Saroornagar Division, Hyderabad, for rectification of the impugned orders.
4. Learned counsel for the petitioner therefore seeks liberty to file an application for rectification under Section 161 of the Goods and Services Tax Act, 2017, in respect of the impugned orders dated 30.12.2025 and 31.12.2025 relatable to the tax period from April, 2021, to March, 2022. Let such application be filed within a period of two (2) weeks. On such application being filed, respondent No.1 would take a decision in accordance with law within three (3) weeks thereafter, after affording an opportunity of hearing.
5. The instant Writ Petition is disposed of with the aforesaid liberty. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.
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