Medi Point Medical and General Store Vs State of Telangana (Telangana High Court)
Telangana High Court Grants Two Weeks to File GST Appeal in Medi Point Medical and General Store Case
Summary: The Telangana High Court granted Medi Point Medical and General Store liberty to file a statutory appeal against an order passed under Section 73 of the Telangana Goods and Services Tax Act, 2017, for the tax period April 2020 to March 2021. The Court allowed two weeks to file the appeal along with the statutory pre-deposit and a delay-condonation application. It left the limitation dispute open for consideration by the appellate authority.
Background of the Case
The petitioner challenged a show cause notice dated 16.02.2022, its summary in FORM GST DRC-01 dated 16.02.2022, and an order dated 24.02.2025 passed under Section 73 of the TGST Act for the period April 2020 to March 2021.
The petitioner approached the High Court contending that the proceedings had been initiated and concluded beyond the prescribed time limit and were therefore barred by limitation.
Petitioner’s Submissions
After some arguments, the petitioner sought liberty to challenge the adjudication order by way of a statutory appeal. Counsel submitted that some delay might have occurred in approaching the appellate authority and requested that the delay be considered sympathetically.
State Tax Department’s Submissions
The State Tax Department submitted that the notification extending the time limit prescribed 28.02.2025 as the cut-off date for passing an adjudication order for FY 2020–21. Since the impugned order was passed on 24.02.2025, the Department contended that the limitation challenge was not tenable.
The Department nevertheless stated that the petitioner could file an appeal and raise all grounds available in law and on facts.
High Court’s Observations
Since the petitioner sought to pursue the statutory appellate remedy, the High Court declined to comment on the merits of the parties’ contentions. Accordingly, the Court did not decide whether the adjudication proceedings were barred by limitation.
Final Directions
The High Court granted the petitioner liberty to:
1. File an appeal within two weeks;
2. Make the statutory pre-deposit; and
3. Submit a delay-condonation application.
The petitioner may raise all available grounds of law and fact in the appeal. The appellate authority was directed to consider the delay in light of the facts and circumstances and, if satisfied with the explanation, proceed to decide the appeal on merits in accordance with law.
The writ petition was disposed of, with no order as to costs. Pending miscellaneous applications, if any, were closed.
Significance of the Order
The order gives the petitioner an opportunity to pursue the statutory appeal despite the possible delay in approaching the appellate authority. However, the Court did not condone the delay itself or decide the limitation challenge.
The appellate authority must consider the delay-condonation application first. If satisfied with the explanation, it may then examine the appeal on merits, including the petitioner’s limitation grounds.
Conclusion
In Medi Point Medical and General Store vs State of Telangana and Another, the Telangana High Court granted two weeks to file an appeal against the Section 73 order for FY 2020–21, subject to statutory pre-deposit and a delay-condonation application.
The Court left the limitation issue undecided and permitted the petitioner to raise all available legal and factual grounds before the appellate authority.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Ms. P. Swetha, learned counsel represents Mr. Safdar Mirza, learned counsel for the petitioner and Mr. K. Sai Akarsh, learned Assistant Government Pleader for State Tax appears for the respondents.
2. With the consent of parties, the Writ Petition is heard finally.
3. The Writ Petition has been preferred against show cause notice dated 16.02.2022, summary of show cause notice in Form GST DRC-01 dated 16.02.2022 and the Order dated 24.02.2025, passed under Section 73 of the Telangana State Goods and Services Tax Act, 2017 (for short, ‘the Act’), for the tax period April, 2020 to March, 2021.
4. The petitioner has approached this Court alleging that the impugned proceedings under Section 73 of the Act have been initiated and concluded beyond the time limit prescribed under the Act and as such, they are barred by limitation.
5. 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.
6. Learned Assistant Government Pleader for State Tax submits that as per the notification extending the time limit, the cut-off date for passing adjudication order in respect of the tax period 2020-21 is 28.02.2025 and as such, challenge made to the impugned order on the ground that the same is barred by limitation, is not tenable. He, however, 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.
7. However, upon hearing 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.
8. 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 it is satisfied on the point of delay, proceed to decide the appeal on merits in accordance with law.
9. 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.
