Karthikeya Construction Vs Superintendent of Central Tax (Telangana High Court)
Telangana High Court Permits GST Appeal and Allows Pre-Deposit from Bank Account Under Attachment
Summary: The Telangana High Court permitted M/s. Karthikeya Construction to pursue a statutory appeal against a GST adjudication order for the tax period April 2021 to March 2022. The Court granted two weeks to approach the appellate authority with a delay-condonation application and statutory pre-deposit. Importantly, where the petitioner’s Electronic Cash Ledger did not contain sufficient balance for the pre-deposit, the Court allowed payment of 10% of the outstanding tax dues from the bank account under attachment pursuant to FORM GST DRC-13.
Background of the Case
The petitioner challenged a show cause notice dated 24.09.2025, the summary in FORM GST DRC-01 dated 27.09.2025, and an Order-in-Original along with FORM GST DRC-07 dated 25.12.2025. The order imposed tax, interest and penalty under Section 73 of the Central Goods and Services Tax Act, 2017, for FY 2021–22.
The petitioner also challenged Notification No. 79 of 2020 dated 15.10.2020, which amended Rule 142(1A) of the CGST Rules, and questioned the vires of Section 16(2)(c) of the CGST Act. It sought a declaration that it was not liable for its supplier’s default.
