Telangana HC Allows Fresh Reply After Supply of Seized Documents in GST Section 74 Proceedings

Bengal Cold Rollers Private Limited Vs Assistant Commissioner (ST) (Telangana High Court)

The Telangana High Court heard the petitioner’s second writ petition concerning adjudication proceedings under Section 74(1) of the Central Goods and Services Tax Act, 2017 for tax periods 2018-19 to 2023-24 (up to December 2023). The petitioner sought restraint on further adjudication until 14 files and other documents seized during investigation on 26.12.2023 and stated to remain in the Department’s custody were returned. The Court noted that the petitioner had already received copies of the box files and that the remaining grievance related to specified office files and certain other documents referred to in the Panchnama.

The learned Special Government Pleader for State Tax submitted that photocopies and digital copies of the remaining office files and six additional documents had been prepared for supply and requested that the petitioner be directed to file a supplementary reply so that adjudication for assessment year 2018-19 could be completed within the statutory limitation ending on 31.12.2025. The petitioner did not object. The Court recorded that the copies had been supplied, granted the petitioner time until 12.12.2025 to file a supplementary reply-affidavit, directed that one further opportunity of personal hearing, if required, be given on 22.12.2025, clarified that no further opportunity would be granted, permitted the Assessing Officer/Adjudicating Officer to pass orders in accordance with law within the statutory period after considering the petitioner’s reply, recorded the parties’ submission that the proceedings were videographed and directed that the same continue on subsequent dates. The writ petition was disposed of without costs, and pending miscellaneous petitions were closed.

FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT

Heard Mr. Karthik Ramana Puttamreddy, learned counsel for the petitioner and Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax appearing for respondents No.1, 2 and 4 to 6.

2. The grievance of the petitioner-company for which it has approached this Court on second occasion, after disposal of its previous Writ Petition No.25079 of 2024 on 03.03.2025, is as under:

“For the reasons stated above, it is prayed that the Hon’ble Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction restraining the 1” Respondent from proceeding any further with the adjudication proposed under Section 74(1) for the tax periods 2018-19 to 2023-24 (upto December, 2023) vide show cause notices dated 29.3.2025, for the tax periods 2022-23 and 2023-24 (upto December, 2023) dated 24.6.2025, for the tax period 2018-19 dated 26.6.2025, for the tax period 2021-22 dated 18.10.2025, for the tax period 2019-20 and intimation in Form DRC-01A dated 28.3.2025 for the year 2020-21 until and unless all 14 files identified in Ex.P-2 of this Writ Petition which are admittedly not returned to the Petitioner but are still in the custody of the l’ Respondent after being seized from the Petitioner’s office by the 5^th Respondent on 26.12.2023, which are to be duly returned to the Petitioner within a specified time-frame preferably two weeks and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.

In the circumstances, it is prayed that this Hon’ble Court may be pleased to grant interim stay of all further proceedings under the show cause notices dated 29.3.2025 for the tax periods 2022-23 and 2023-24 (upto December, 2023), dated 24.6.2025 for the tax period 2018-19, dated 26.6.2025 for the tax period 2021-22, dated 18.10.2025 for the tax period 2019-20 and intimation in Form DRC-01A dated 28.03.2025 for the year 2020-21 issued by the 1′ Respondent, pending disposal of Writ Petition as otherwise the Petitioner will be put to severe loss and hardship.”

3. On an earlier date, when the matter was taken up, learned Special Government Pleader for State Tax was allowed time to obtain instructions on the question of scanned copies of certain documents, which were seized during investigation and which form part of inventory or Panchnama apart from other files, which have already been handed over. The Panchnama, on which both the parties rely, is at page Nos.115 and 116 of the Writ Petition. Relevant portion of the Panchnama is extracted hereunder:

4. Let it be indicated that the petitioner has received copies of the box files from Serial Nos.1 to 24 earlier as per its own case also. Its grievance was in relation to the office files from Serial Nos.1 to 11 except Serial Nos.2, 8 and 9. Petitioner also sought copies of the documents enumerated at internal page No.3 of page No.116 of the Writ Petition, which is extracted hereinabove.

5. Yesterday, when the matter was taken up, learned Special Government Pleader for State Tax submitted that the State Tax Department is ready with the photocopies and pen drive containing digital copies of the documents enumerated at page 115 of the Writ Petition under Office Files Serial Nos.1 to 11 leaving aside Serial Nos.2, 8 and 9, which the petitioner has already got, and 6 documents enumerated at page No.116 of the Writ Petition. He sought time to bring them on record with copies thereof through affidavit. It was also submitted that since the last date of passing of the order in respect of assessment year 2018-19 is 31.12.2025, the petitioner, having filed its reply in respect of the show cause notice for the said assessment year, may be directed to submit a supplementary reply-affidavit within a timeframe upon perusal of documents being supplied to it so that the State Tax Department is able to pass orders within the statutory period of limitation.

6. Learned counsel for the petitioner does not object to the said prayer.

7. Since the copies of the enumerated documents as stated above have been supplied, petitioner is allowed time till12.2025 to submit its supplementary reply-affidavit.

8. One more opportunity of personal hearing, if required, be granted to the petitioner on 22.12.2025. No further opportunity would be granted to the petitioner. The Assessing Officer/Adjudicating Officer is at liberty to pass orders upon consideration of the petitioner’s reply-affidavit in accordance with law within the statutory period.

9. Learned counsel for the petitioner as well as respondents No.1, 2 and 4 to 6/State Tax Department submit that the proceedings are videographed.

10. Let it be done on the following dates as well.

11. The instant Writ Petition stands disposed of accordingly. No costs.

As a sequel, miscellaneous petitions, pending if any, stand closed.