Sahasra Enterprises Vs Assistant Commissioner of Central Tax (Telangana High Court)
Telangana High Court Directs GST Taxpayer to Pursue Statutory Appeal in Classification Dispute
The Telangana High Court reiterated that disputes involving GST classification, applicable tax rates, and factual examination of transactions are best adjudicated by appellate authorities under the GST framework rather than through writ jurisdiction under Article 226 of the Constitution.
In the present case, the petitioner challenged a GST demand raised under Section 74 alleging short payment of tax at 12% instead of 18% on services rendered as a sub-sub-contractor. The Court declined to interfere in writ proceedings and directed the petitioner to avail the statutory appellate remedy under Section 107 of the GST Act.
Introduction
The Telangana High Court in Sahasra Enterprises vs Assistant Commissioner of Central Tax & Another dealt with a writ petition challenging an Order-in-Original dated 17.09.2025 passed under:
- Central Goods and Services Tax Act, 2017
- Telangana Goods and Services Tax Act, 2017
- Integrated Goods and Services Tax Act, 2017
The impugned order imposed GST liability of Rs.36,81,736/- on the petitioner on the ground that GST had been discharged at the rate of 12% instead of 18%.
The petitioner contended that the services supplied by it were correctly taxable at 12% in terms of the applicable GST notification and that invocation of Section 74 alleging suppression was legally unsustainable.
