Udeva Preci Steel Products Mft. Co. Vs Superintendent of Central Tax and Central Excise (Telangana High Court)
The Telangana High Court heard a writ petition challenging the order-in-original dated 08.12.2023 and the summary order in Form GST DRC-07 dated 28.12.2023. The petitioner contended that the adjudication order was passed without considering its reply dated 19.08.2023 and without proper verification of records, allegedly violating principles of natural justice and the procedure prescribed under the CGST Act 2017. The petitioner also challenged the rejection of its rectification application dated 07.02.2024, which was rejected by order dated 28.01.2026.
The dispute related to the period from July 2017 to March 2018. According to the petitioner, certain suppliers had issued invoices and filed returns using GSTIN 32ZA due to lack of clarity, which resulted in mismatch between GSTR-3B and GSTR-2A/2B. The suppliers subsequently amended details on the GST portal for 2017-18. However, the department issued Form GST DRC-01A proposing a demand of Rs.15,37,411.74 alleging excess input tax credit for 2017-18.
The petitioner submitted that it had replied explaining that the mismatch arose because of the dual GSTIN issue and supplier errors, which required verification of amended invoices. Despite this, the proper officer passed the adjudication order demanding tax, interest, and penalty. The petitioner further argued that even the rectification application was rejected without proper application of mind.
