Trillion Lead Factory Private Limited Vs Superintendent of Central Tax (Telangana High Court)
The Telangana High Court considered a writ petition challenging a show cause notice dated 17.12.2025 issued for cancellation of GST registration. The petitioner contended that the notice did not contain specific details of the charges, thereby preventing an effective response. It was also argued that the notice was issued at the instance of a superior authority, namely the Deputy Director of DGGI, and that the proper officer initiated proceedings without reaching a conclusion on alleged violations of Section 16(2)(b) and 16(2)(c) of the Central Goods and Services Tax Act, 2017. The petitioner had submitted two replies to the notice addressing the allegations.
The petitioner relied on various judicial precedents to argue that vague show cause notices lacking specific allegations are unsustainable. In response, the department submitted that the petitioner had understood the allegations from the supporting documents annexed to the notice. These documents indicated violation of Rule 21(e) of the CGST Rules, relating to availment of Input Tax Credit (ITC) in contravention of Section 16 of the Act. It was further argued that the petitioner had filed detailed replies addressing allegations of ITC availed from non-existent or non-operational suppliers, demonstrating awareness of the charges.
