Edique Solutions Private Limited Vs State of Telangana & Others (Telangana High Court)
Summary: The Telangana High Court dealt with a challenge to an assessment order and the consequential Form GST DRC-07 dated 27.02.2025, passed under Section 73 of the CGST Act, 2017 for the financial year 2020-21.
The petitioner submitted that it became aware of the GST liability only after a garnishee notice in Form GST DRC-13 dated 06.03.2026 was issued for attachment of its bank account. The petitioner alleged that the assessment order had been uploaded on the GST portal without being served upon it, resulting in violation of principles of natural justice.
During the hearing, the petitioner sought liberty to avail the statutory appellate remedy. The High Court accordingly permitted the petitioner to file an appeal within two weeks, along with the statutory pre-deposit and a delay condonation application. The Court also directed that no coercive steps be taken pursuant to the garnishee notice during the said two-week period.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard Mr. Kailash Nath P S S, learned counsel appearing for the petitioner and Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax appears for respondent Nos.1 to 3.
2. The writ petition has been preferred against the assessment order and summary of the order in Form GST DRC-07, dated 27.02.2025 passed under Section 73 of the Central Goods and Services Tax Act, 2017, for the financial year 2020-21 by respondent No.3 imposing tax and penalty on the petitioner.
3. The petitioner has approached this Court alleging that it has come to know about the liability only upon issuance of garnishee notice in Form GST DRC-13 dated 06.03.2026 for attachment of its bank account. The petitioner alleges that the impugned order is contrary to law and violative of principles of natural justice as the same has been uploaded on the GSTIN portal without serving on the petitioner.
4. However, after some arguments, learned counsel for the petitioner seeks liberty to the petitioner to prefer an appeal against the impugned order. He submits that some delay might have been occurred in approaching the appellate authority and therefore, the appellate authority may be directed to consider the appeal sympathetically.
5. Learned counsel for the respondent Department submits that the petitioner is at liberty to prefer an appeal against the impugned order taking all the grounds as are available to it in law and on facts before the appellate authority in respect of the subject tax period.
6. However, upon hearing the learned counsel for the parties, since the petitioner seeks liberty to prefer an appeal, we do not wish to comment on the merits of the contentions raised by the parties.
7. Therefore, we grant liberty to the petitioner to prefer an appeal within a period of two weeks with statutory pre-deposit and a delay condonation application. The petitioner may take all such grounds of law and on facts in the memo of appeal as are available to it. Needless to say, the appellate authority would consider the question of delay taking into account the aforesaid facts and circumstances and if it is satisfied on the point of delay, proceed to decide the appeal on merits in accordance with law. During the period of two weeks within which the petitioner has to file an appeal, no coercive steps be taken against the petitioner pursuant to the impugned garnishee notice.
8. The writ petition is accordingly disposed of. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed.
