S. Malla Reddy and Company Vs Deputy Commissioner – 2 (State Taxes) (Telangana High Court)
In a significant relief to taxpayers, the Telangana High Court in M/s. S. Malla Reddy and Company vs. Deputy Commissioner (State Taxes) (W.P. No. 10317 of 2026, dated 08.04.2026) has permitted filing of a delayed appeal even after rejection of a rectification application, emphasizing the importance of substantive justice over procedural technicalities.
Facts of the Case
The petitioner challenged:
- Order dated 07.11.2025 passed under Section 73 of the CGST/SGST Act, 2017
- Corresponding Form GST DRC-07 dated 07.11.2025
- Rectification rejection order dated 12.01.2026
Instead of directly filing an appeal, the petitioner had initially pursued a rectification application, which was subsequently rejected by the department.
Issue Before the Court
Whether the petitioner, after pursuing a rectification remedy and facing delay, can still be permitted to file an appeal against the original order.
Contentions
- The Department contended that the petitioner had an effective alternative remedy by way of appeal.
- The Petitioner sought liberty to file an appeal, highlighting that:
- Delay occurred due to pursuing rectification
- The delay should be condoned on equitable grounds
Observations of the High Court
The Hon’ble Court took a practical view and observed:
- The rectification rejection order did not alter the original order
- Therefore, the appropriate remedy remained an appeal against the Order-in-Original
- The petitioner had been bonafide pursuing a remedy before the Court, which deserves consideration
Directions Issued
