Telangana HC Allows Taxpayer to Pursue GST Appeal Against Assessment Order Despite Delay

Diamond Service Center Vs State of Telangana (Telangana High Court)

The Telangana High Court declined to examine the merits of a GST assessment order challenged nearly two years after its issuance but granted liberty to the taxpayer to pursue the statutory appellate remedy. The Court directed that if an appeal is filed within two weeks along with a delay condonation application and statutory pre-deposit, the appellate authority shall consider the question of delay and, if satisfied with the explanation, decide the appeal on merits.

Introduction

In M/s. Diamond Service Center v. State of Telangana & Another, the petitioner challenged an assessment order passed under Section 73 of the Telangana Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 relating to the tax period 2017-18.

The principal issue before the Court was whether the writ petition should be entertained when the petitioner claimed that it became aware of the assessment order only in December 2025, despite the order having been passed on 30.12.2023.

Facts of the Case

The dispute arose from:

• Assessment Order dated 30.12.2023 passed under Section 73 of the TGST Act and CGST Act.
• The proceedings related to Assessment Year 2017-18.
• The writ petition was filed on 31.12.2025.

The petitioner contended that:

• It became aware of the assessment order only in December 2025.
• The order had merely been uploaded in the “Additional Notices” tab on the GST Portal.
• No effective service of the show cause notice or assessment proceedings had been made.
• Consequently, the delay in approaching the Court was not deliberate.

Petitioner’s Contentions