Silver Prints Private Limited Vs Assistant Commissioner (ST) (Telangana High Court)
Summary: The Telangana High Court disposed of the writ petition in terms of its order in W.P. No. 3600 of 2024 dated 22.02.2024, based on the consensus reached by the parties. The Court directed the petitioner to deposit 10% of the tax liability assessed by the Assessing Officer with the Department within four weeks. It further directed the petitioner to approach the Goods and Services Tax Appellate Tribunal (GSTAT) within three months from the date of its constitution or establishment. The Court directed that the Appellate Tribunal shall decide the second appeal in accordance with law. It also ordered that, subject to the petitioner depositing 10% of the tax liability within the stipulated period, no coercive action shall be taken against the petitioner until the Appellate Tribunal decides the second appeal. The Court clarified that it had not expressed any opinion on the merits of the case. There was no order as to costs, and all pending miscellaneous applications, if any, stood closed.
Introduction
In M/s. Silver Prints Private Limited v. Assistant Commissioner (ST), Malkajgiri-3 Circle & Others, the Telangana High Court dealt with a writ petition concerning the petitioner’s GST dispute pending availability of the appellate remedy before the GST Appellate Tribunal.
During the hearing, both parties agreed that the matter could be disposed of in terms of the earlier judgment of the High Court in W.P. No. 3600 of 2024 dated 22.02.2024, leading to a consensual disposal of the writ petition.
Facts of the Case
The petitioner, M/s. Silver Prints Private Limited, challenged the GST proceedings before the Telangana High Court.
At the hearing:
- Counsel appearing for both parties agreed that the writ petition could be disposed of by following the principles laid down in the High Court’s earlier decision in P. No. 3600 of 2024 dated 22.02.2024.
- Accordingly, the Court proceeded to dispose of the writ petition based on the mutually accepted course suggested by both sides.
Petitioner’s Stand
The petitioner sought appropriate relief from the High Court in relation to the GST demand and the availability of the appellate remedy before the GST Appellate Tribunal.
During the hearing, the petitioner agreed to resolve the matter in terms of the earlier High Court judgment governing similar disputes.
Revenue’s Stand
The State Tax Department also agreed that the writ petition could be disposed of following the directions issued in W.P. No. 3600 of 2024, thereby avoiding further adjudication before the High Court.
Court’s Observations
Accepting the consensus reached between the parties, the High Court directed the petitioner to:
- Deposit 10% of the tax liability assessed by the Assessing Officer within four weeks.
- Approach the Goods and Services Tax Appellate Tribunal (GSTAT)within three months from the date of its constitution/establishment.
The Court further directed that the Appellate Tribunal shall decide the second appeal in accordance with law.
Importantly, the Court clarified that no coercive action shall be taken against the petitioner until disposal of the second appeal by the GSTAT, provided the petitioner deposits the prescribed 10% of the assessed tax liability within the stipulated period.
The Bench also made it clear that it had not expressed any opinion on the merits of the dispute.
Final Decision
The Telangana High Court:
- Directed the petitioner to deposit 10% of the assessed tax liability within four weeks.
- Granted liberty to approach the GSTAT within three months of its constitution.
- Directed the GSTAT to decide the second appeal in accordance with law.
- Ordered that no coercive recovery action shall be taken till disposal of the second appeal, subject to compliance with the deposit condition.
- Clarified that the Court had not expressed any opinion on the merits of the dispute.
- Disposed of the writ petition without any order as to costs.
Key Takeaways
1. High Court Continues to Facilitate Transition to GSTAT
The decision reflects the Telangana High Court’s consistent approach of directing taxpayers to pursue the statutory second appellate remedy before the GST Appellate Tribunal.
2. Deposit of 10% Tax Liability Required
Taxpayers seeking protection against recovery are required to deposit 10% of the assessed tax liability, as directed by the Court.
3. Protection Against Coercive Recovery
Upon compliance with the deposit requirement, taxpayers receive interim protection from coercive recovery proceedings until the GSTAT decides the appeal.
4. Merits Left Open for GSTAT
The High Court deliberately refrained from examining the merits, leaving all factual and legal issues to be adjudicated independently by the GST Appellate Tribunal.
Conclusion
In M/s. Silver Prints Private Limited v. Assistant Commissioner (ST), Malkajgiri-3 Circle & Others, the Telangana High Court adopted a pragmatic approach by directing the taxpayer to avail the statutory remedy before the GST Appellate Tribunal while simultaneously protecting it from coercive recovery upon payment of 10% of the assessed tax. The ruling reinforces the Court’s consistent practice of encouraging taxpayers to pursue the statutory appellate mechanism now available under the GST framework while ensuring interim safeguards against recovery proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Mr. R. Arun Kumar, learned counsel appears for the petitioner.
Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for the respondents.
2. During the course of hearing, learned counsel for the parties reached to a consensus. It is agreed that this writ petition may be disposed of in terms of order passed in W.P.No.3600 of 2024, dated 22.02.2024.
3. Accordingly, as agreed, the instant Writ Petition is disposed of by directing the petitioner to deposit 10% of the tax liability as assessed by the Assessing Officer with the Department within four weeks from today. The petitioner shall approach the Goods and Services Tax Appellate Tribunal (hereinafter referred to as, “the Appellate Tribunal”) within three months from the date of its constitution/establishment. The Appellate Tribunal shall decide the second appeal in accordance with law. Further, subject to depositing 10% of the tax liability within the aforesaid time, no coercive action be taken against the petitioner till the decision of the Appellate Tribunal in the second appeal. It is made clear that this Court has not expressed any opinion on the merits of the case. There shall be no order as to costs.
Miscellaneous applications pending, if any, shall stand closed.
