Merge Stones Vs Assistant Commissioner (ST) (Telangana High Court)
Telangana High Court Permits GST Appeal Against Adjudication Orders; Directs Consideration of Delay Condonation
Summary: The Telangana High Court disposed of the writ petition filed by M/s. Merge Stones challenging two adjudication orders dated 12 December 2025 and 19 December 2025 concerning the same tax period, 2021–22, under Section 73 of the Central Goods and Services Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017. The petitioner contended, among other grounds, that the adjudication proceedings were contrary to Rule 142(1A) of the CGST Rules, 2017, as Form GST DRC-01A had allegedly not been issued before the show cause notice in Form GST DRC-01. During the hearing, however, the petitioner sought liberty to pursue the statutory appellate remedy and requested consideration of the delay in filing the appeal. The State Tax authorities submitted that the petitioner could raise all available factual and legal grounds before the appellate authority.
Without expressing any opinion on the merits of the challenge, the High Court permitted the petitioner to file an appeal within two weeks, subject to payment of the statutory pre-deposit and submission of a delay-condonation application. The appellate authority was directed to examine the question of delay in light of the facts and circumstances and, if satisfied, decide the appeal on merits in accordance with law. The Court did not itself condone the delay or determine the validity of the orders or the alleged non-issuance of Form GST DRC-01A. The writ petition was disposed of without costs, and pending miscellaneous applications were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Learned counsel Ms. K.Uma appears for the petitioner.
Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for respondents No.1 to 3 and 5.
2. The writ petition has been preferred against the adjudication orders dated 12.12.2025 and 19.12.2025 issued by respondents No.1
2 and 2 for the same tax period 2021-22 under Section 73 of the Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017.
3. The petitioner has approached this Court alleging various grounds including the ground that the impugned orders are contrary to Rule 142(1A) of the Central Goods and Services Tax Rules, 2017, since Form GST DRC-01A is not issued prior to issuance of the show cause notice in Form GST DRC-01.
4. However, after some arguments, learned counsel for the petitioner seeks liberty to the petitioner to prefer an appeal against the impugned orders. She submits that some delay might have been occurred in approaching the appellate authority and therefore, the appellate authority may be directed to consider the appeal sympathetically.
5. Learned Special Government Pleader for State Tax submits that the petitioner is at liberty to prefer an appeal against the impugned orders taking all the grounds as are available to it in law and on facts before the appellate authority in respect of the subject tax period.
6. However, upon hearing the 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.
7. Therefore, 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 on 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.
8. The writ petition is accordingly disposed of. There shall be no order as to costs.
Miscellaneous applications pending, if any, shall stand closed.
