Shalimar Industries Vs Assistant Commissioner (Telangana High Court)
Telangana High Court Remands GST Appeal on Reverse Charge Mechanism (RCM) Demand for Fresh Consideration
The Telangana High Court set aside the appellate order dated 12.03.2026 and remanded the matter to the appellate authority for fresh consideration of a GST demand, including Reverse Charge Mechanism (RCM) liability on raw cotton transactions for FYs 2017-18 to 2022-23. The petitioner contended that the purchases were made for trading purposes, that documentary evidence including invoices, e-way bills, bank statements and reconciliation statements had not been properly considered, and that a composite order under Sections 73 and 74 of the CGST Act had been passed without satisfying the ingredients of Section 74. The respondents submitted that the matter could be remanded for reconsideration. Taking note of the submissions of both parties, the Court set aside the order-in-appeal and directed the appellate authority to pass a fresh order in accordance with law after providing an opportunity of hearing. The Court also permitted the petitioner to raise additional grounds within two weeks and disposed of the writ petition without any order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Learned counsel Sri K.P.Amarnath Reddy appears for the petitioner.
