K K Metal Works Vs Superintendent of Central Tax (Telangana High Court)
The Telangana High Court disposed of a writ petition challenging a show cause notice dated 21.03.2026 issued proposing cancellation of the petitioner’s GST registration for alleged violations specified in the notice. The petitioner had promptly appeared before the authorities and filed a detailed reply on 01.04.2026, followed by an additional reply on 09.04.2026. The petitioner also alleged that departmental officials had orally demanded payment of more than ₹90 lakh towards penalty, though the Court noted that there was no material on record to support this allegation.
The respondent submitted that no final order had yet been passed on the show cause notice. Considering this, the Court held that it would be appropriate for the statutory authorities to take the proceedings initiated by the show cause notice to their logical conclusion. It directed the respondent to complete the proceedings within fifteen days.
The Court relied on an earlier Division Bench judgment in W.P. No. 537 of 2026, where it was held that although the show cause notice alleged violation of Rule 21(e) read with Section 16 of the Act, the annexed communication adequately disclosed the basis of the allegations. Since the petitioner had understood the allegations and filed detailed replies, no prejudice was caused, and the Proper Officer was at liberty to decide the proceedings in accordance with law.
The Court further noted that the said Division Bench judgment had been challenged before the Supreme Court in SLP (C) No. 7101 of 2026, which was dismissed on 27.02.2026. The Supreme Court observed that the show cause notice had been preceded by several communications seeking explanation regarding alleged wrongful availment of Input Tax Credit (ITC), that the petitioner had submitted a detailed reply, and that the writ petition had been dismissed as not maintainable. The Supreme Court reiterated the settled principle that a writ petition ordinarily does not lie against the issuance of a show cause notice, referring to its decisions in Secretary, Ministry of Defence and Others v. Prabhash Chandra Mirdha and Commr. of Central Excise Commissionerate v. M/s. Krishna Wax (P) Ltd.
Following the same approach, the Telangana High Court disposed of the writ petition and directed the respondent to pass a decision, if not already passed, within fifteen days. No order as to costs was made, and all pending miscellaneous applications stood closed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
