Sure Energy Systems Private Limited Vs Union of India (Telangana High Court)
Telangana High Court Permits GST Taxpayer to File Appeal Against Section 73 Order and Rectification Rejection
In Sure Energy Systems Private Limited v. Union of India and Others, the petitioner approached the Telangana High Court against an order dated 30.04.2024 passed under Section 73 of the TGST Act, 2017. The challenge also covered the summary of the order in FORM GST DRC-07 dated 01.05.2024 and a rectification rejection order dated 20.07.2026.
Proceedings Before the High Court
The State’s Special Government Pleader submitted that the petitioner’s proper remedy was to prefer an appeal. After some arguments, the petitioner sought liberty to pursue that remedy and requested that any delay in approaching the appellate authority be considered sympathetically.
The Court accepted the request to pursue the statutory appeal. It expressly refrained from commenting on the merits of the contentions raised by either party.
Directions Issued by the Court
The Telangana High Court granted the petitioner liberty to:
1. File an appeal within two weeks.
2. Make the statutory pre-deposit.
3. File an application seeking condonation of delay.
4. Raise all grounds of law and fact available in the memorandum of appeal.
The appellate authority was directed to consider the question of delay in light of the facts and circumstances. If satisfied with the explanation for delay, it must proceed to decide the appeal on merits in accordance with law.
The writ petition was disposed of with these directions. No order was passed as to costs, and pending miscellaneous applications, if any, were closed.
Significance of the Order
The order provides the petitioner an opportunity to pursue the statutory appellate remedy despite the possibility of delay. However, the Court did not condone the delay itself or decide the legality of the underlying GST demand or rectification rejection. The question of delay remains for the appellate authority, and consideration of the appeal on merits is conditional upon the authority being satisfied on that issue.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
2. The instant Writ Petition has been preferred against order dated 30.04.2024, passed under Section 73 of the Telangana State Goods and Services Tax Act, 2017 (for short ‘the Act’), along with summary of the order in FORM GST DRC-07 dated 01.05.2024 and the rectification rejection order dated 20.07.2026 passed by respondent No.4.
3. Learned Special Government Pleader for State Tax submits that the proper remedy for the petitioner is to prefer an appeal.
4. However, after some arguments, learned counsel for the petitioner seeks liberty to the petitioner to prefer an appeal against the impugned orders. He submits that some delay might have been occurred in approaching the appellate authority and therefore, he may be directed to consider it sympathetically.
5. 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.
6. 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.
7. 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.
