Shaheen Educational Services Private Limited Vs ACIT – Telangana High Court
Telangana High Court Permits Appeal Against GST DRC-07 and DRC-13 Recovery Notice, Grants Protection from Coercive Action
Summary: The Telangana High Court considered a writ petition filed by Shaheen Educational Services Private Limited challenging a show cause notice in Form GST DRC-01 dated 29.09.2025, an order in Form GST DRC-07 dated 08.12.2025 and the consequential recovery notice in Form GST DRC-13 dated 18.07.2026. The petitioner had alleged that the impugned show cause notice and order were unsigned and, therefore, invalid or unauthentic.
During the hearing, however, the petitioner sought liberty to prefer an appeal against the impugned order, submitting that some delay might have occurred in approaching the appellate authority and requesting that the delay be considered sympathetically. The State Tax Department submitted that the petitioner was at liberty to prefer an appeal raising all grounds available in law and on facts.
The High Court, without expressing any opinion on the merits of the contentions, granted liberty to the petitioner to file an appeal within two weeks along with the statutory pre-deposit and an application for condonation of delay. The petitioner was also permitted to raise all available grounds of law and fact in the appeal. The Court directed that the appellate authority consider the question of delay in light of the facts and circumstances and, if satisfied, proceed to decide the appeal on merits in accordance with law.
The Court further directed that no coercive steps be taken against the petitioner pursuant to the impugned garnishee notice during the two-week period granted for filing the appeal. The writ petition was accordingly disposed of, with no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
2. The writ petition has been preferred against the show cause notice in Form GST [DRC-01] dated 29.09.2025, the order in Form GST DRC-07 dated 08.12.2025 and the consequential recovery notice in Form GST DRC-13 dated 18.07.2026.
3. The petitioner has approached this court alleging that impugned show cause notice and the order are unsigned documents and they are not valid or authentic.
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 it sympathetically.
5. Learned Assistant Government Pleader for State Tax submits that the petitioner was at liberty to prefer an appeal against the impugned order taking all the grounds as are available 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. 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 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 he 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 the appeal, no coercive steps be taken against the petitioner pursuant to the impugned garnishee notice.
8. The writ petition is accordingly disposed of with the aforesaid liberty. There shall be no order as to costs.
Miscellaneous applications pending, if any, shall stand closed.
