Telangana HC Permits Taxpayer to Pursue GST Appeal Against Assessment Order

United Engineering Co. Vs Superintendent of Central Tax (Telangana High Court)

Telangana High Court Permits Taxpayer to Pursue GST Appeal Against Assessment Order After Claiming Knowledge Through Recovery Proceedings  

The Telangana High Court disposed of a writ petition challenging a GST assessment order by granting liberty to the taxpayer to avail the statutory appellate remedy. The Court directed that if the appeal is filed within two weeks along with the prescribed pre-deposit, the appellate authority may consider the appeal in accordance with law while taking into account that the petitioner had been pursuing a writ remedy before the High Court.

Introduction

In M/s. United Engineering Co. v. Superintendent of Central Tax & Others, the petitioner challenged an assessment order passed under Section 73 of the Central Goods and Services Tax Act, 2017 for the tax period 2020-21.

The petitioner claimed that it became aware of the tax liability only after receiving communications from the department demanding payment and upon initiation of bank attachment proceedings through Form GST DRC-13.

Facts of the Case

The dispute arose from:

• Order-in-Original dated 25.02.2025 passed under Section 73 of the CGST Act, 2017.
• The order imposed GST demand along with interest and penalty for the tax period 2020-21.
• The petitioner contended that it became aware of the liability only when:
  • Departmental authorities contacted it demanding payment; and
  • Recovery proceedings were initiated through Form GST DRC-13 (bank attachment proceedings).

Aggrieved by the assessment and recovery action, the petitioner approached the Telangana High Court under Article 226 of the Constitution.

Petitioner’s Contentions

The petitioner submitted that: