S. Shivraj Reddy Constructions Vs Assistant Commissioner (ST) (Telangana High Court)
Telangana High Court Directs Taxpayer to Reply to GST Show Cause Notice; Challenge to GST on Royalty Left Open
The content is a Legal Case/Judgment/Tribunal Order. The Telangana High Court disposed of a writ petition challenging Form GST DRC-01 dated 24.01.2025 issued for the assessment year 2022-23. The petitioner, engaged in extracting minor and major minerals under a Memorandum of Understanding-cum-Agreement dated 23.10.2020 with M/s. Reya Minerals on a royalty payment basis, challenged the show cause notice issued after discrepancies were identified based on information furnished by the Senior Audit Officer, Office of the Accountant General, Hyderabad. During the hearing, the petitioner confined its challenge to the levy of GST on royalty, while the State Tax submitted that the show cause notice also contained other discrepancies and could not be stalled on a single issue. The High Court directed the petitioner to participate in the proceedings by filing objections to the impugned show cause notice. It further observed that, if aggrieved by the adjudication order, the petitioner would be at liberty to challenge both the levy of GST on royalty and the other discrepancies in appropriate proceedings. The writ petition was disposed of without any order as to costs, and pending miscellaneous applications were closed.
