S.Shivraj Reddy Constructions Vs Assistant Commissioner (ST) (Telangana High Court)
Telangana High Court Refuses to Interfere at Show-Cause Notice Stage; Directs Assessee to File Objections
The Telangana High Court disposed of a writ petition challenging Form GST DRC-01 dated 24.01.2025 issued for the tax period 2021–22. The petitioner, engaged in the business of extracting minor and major minerals, had entered into a Memorandum of Understanding-cum-Agreement with M/s. Reya Minerals on 23.10.2020 for quarry operations on a royalty payment basis. The show cause notice, issued based on information furnished by the Senior Audit Officer, Audit Management Group-3, Office of the Accountant General, Hyderabad, identified certain discrepancies and required payment of tax and interest or filing of objections in Form GST DRC-06 within 15 days. During the hearing, the petitioner confined its challenge to the levy of GST on royalty, while the respondents submitted that the show cause notice also contained other discrepancies. The Court directed the petitioner to participate in the proceedings by filing objections to the impugned show cause notice and 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 accordingly disposed of without any order as to costs.
