Upakar Infra Projects Private Limited Vs Commissioner of Customs & Central Tax (Telangana High Court)
Telangana High Court Directs Taxpayer to Avail GSTAT Remedy Against Penalty Orders; Declines Writ Jurisdiction
The Telangana High Court declined to entertain a writ petition challenging GST penalty orders where an effective statutory remedy before the Goods and Services Tax Appellate Tribunal (GSTAT) was available. The Court held that since GSTAT had been constituted and was functioning, the petitioner should pursue the appellate remedy provided under Section 112 of the CGST Act.
Introduction
In M/s. Upakar Infra Projects Private Limited v. Commissioner of Customs & Central Tax (Appeals-I) & Others, the Telangana High Court examined whether a taxpayer could directly invoke writ jurisdiction to challenge penalty orders under the GST law when the statutory appellate forum, namely GSTAT, had become operational.
The Court reiterated the settled principle that writ jurisdiction should ordinarily not be exercised when an efficacious alternative statutory remedy is available.
Facts of the Case
The petitioner challenged:
- Order-in-Original dated 25.10.2024, and
- Order-in-Appeal dated 31.10.2025
relating to the tax periods 2018-19 to 2021-22.
The impugned orders imposed:
- Penalty of ₹2,30,68,242 under Section 122(1)(vii) of the CGST Act, 2017;
- Penalty of ₹3,10,63,378 under Section 122(1)(ii) of the CGST Act, 2017; and
- Penalty of ₹50,000 under Section 122(3)(a) of the CGST Act, 2017.
The petitioner approached the High Court contending that:
