Balaji Filling Station Vs State Tax Officer (Telangana High Court)
Telangana High Court Sets Aside GST Show Cause Notice and Order Issued in Breach of Statutory Timeline Under Section 73(2)
Summary: The Telangana High Court considered GST proceedings concerning Financial Year 2017-18 initiated under Section 73 of the Telangana Goods and Services Tax Act, 2017. The petitioner challenged the show cause notice dated 28.12.2023 and consequential order dated 30.12.2023, contending that the proceedings were contrary to the statutory timeline prescribed under Section 73(2) and barred by limitation. The State Tax Department, on instructions, fairly submitted that the impugned show cause notice dated 28.12.2023 was contrary to Section 73(2) of the Act. In view of this submission, the Court held that the consequential order dated 30.12.2023 arising out of the show cause notice could not be sustained in law, being contrary to the specific statutory timeline under Section 73(2). The Court accordingly set aside both the show cause notice dated 28.12.2023 and the consequential order dated 30.12.2023 and allowed W.P. No. 25574 of 2026, with no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Sri Tejprakash Toshniwal, learned counsel appears for petitioner.
Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appears for respondents.
2. Learned counsel for the petitioner submits that the show cause notice in respect of the Financial Year 2017-18 was passed under Section 73 of the Telangana Goods and Services Tax Act, 2017 (for short, “the Act”) on 28.12.2023 and the order was passed on 30.12.2023, which is in teeth of Section 73(2) of the Act and also barred by limitation.
3. Learned counsel for State Tax submits on instructions that the impugned show cause notice dated 28.12.2023 is contrary to Section 73(2) of the Act.
4. In view of fair submission made on instructions by the learned counsel for State Tax, the impugned order dated 30.12.2023 arising out of the show cause notice dated 28.12.2023 also impugned herein cannot be
HCJ (AKrS, J) & GMM, J 2 W.P.No.25574 of 2026 sustained in the eye of law being in teeth of the specific mandate of timeline to be adhered under Section 73(2) of the Act.
5. Accordingly, the impugned show cause notice dated 28.12.2023 and the impugned order dated 30.12.2023 are set aside.
Therefore, the instant Writ Petition is allowed. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.
