GST Appeal Allowed as Assessee Pursued Writ Remedy Before Telangana HC

United Engineering Co. Vs Superintendent of Central Tax (Telangana High Court)

Telangana High Court Permits Taxpayer to File GST Appeal After Claiming Knowledge of Demand Through Recovery Proceedings

The Telangana High Court granted liberty to the taxpayer to pursue the statutory appellate remedy against a GST assessment order after the petitioner claimed that it became aware of the tax liability only upon initiation of recovery proceedings and bank attachment under Form GST DRC-13. The Court directed that if the appeal is filed within two weeks along with the prescribed pre-deposit, the appellate authority may consider the matter in accordance with law while taking into account the pendency of the writ proceedings.

Introduction

In M/s. United Engineering Co. v. Superintendent of Central Tax & Others, the petitioner challenged an Order-in-Original and the corresponding summary order in Form GST DRC-07 issued under Section 73 of the Central Goods and Services Tax Act, 2017.

Rather than seeking adjudication of the dispute on merits before the High Court, the petitioner requested liberty to avail the statutory appellate remedy, citing delayed knowledge of the assessment and recovery action.

Facts of the Case

The dispute arose from:

• Order-in-Original dated 27.08.2024 passed under Section 73 of the CGST Act, 2017.
• Form GST DRC-07 dated 30.08.2024 summarizing the demand.
• The proceedings related to the tax period 2019-20.
• The order imposed tax, interest, and penalty upon the petitioner.

The petitioner contended that: