R.K. Traders Vs State of Telangana (Telangana High Court)
In yet another important GST transitional relief matter, the Telangana High Court granted protection to the taxpayer against coercive recovery proceedings while directing the assessee to pursue the statutory second appellate remedy before the Goods and Services Tax Appellate Tribunal (GSTAT).
The Court followed its earlier precedent and balanced the interests of both the taxpayer and the revenue by requiring partial deposit of the disputed tax demand while simultaneously restraining coercive action until the second appeal is decided.
The ruling reflects the Telangana High Court’s continuing pragmatic approach in handling GST disputes during the transition phase involving operationalization of the GST Appellate Tribunal framework.
Case Background
Petitioner
M/s. R.K. Traders
Respondents
- State of Telangana
- Commercial Tax Department
- Other departmental authorities
Facts of the Case
The petitioner approached the Telangana High Court in relation to GST assessment proceedings initiated by the department.
During the course of hearing:
- Both parties reached consensus that the writ petition could be disposed of in terms of the earlier judgment passed by the High Court in:
- W.P. No.3600 of 2024 dated 22.02.2024
The dispute essentially revolved around:
- Availability of effective appellate remedy before GSTAT, and
- Interim protection from recovery proceedings till such appeal is pursued.
Key Legal Issue
