Keshav Reddy Sweets Vs Assistant Commissioner of State Tax (Telangana High Court)
Telangana High Court – Rectification of Section Mention Error in GST Order | Telangana HC Allows Rectification for Wrong Section Mention in GST Order; Clarifies Penalty Cannot Be Mischaracterized (FY 2017-18)
Introduction
Errors in GST orders, even if clerical or technical, can create significant confusion and legal consequences for taxpayers—especially when they relate to penal provisions like Sections 73 and 74 of the CGST Act. In a recent ruling dated 07.04.2026, the Telangana High Court dealt with such a discrepancy in the case of Keshav Reddy Sweets vs. Assistant Commissioner of State Tax. The Court emphasized the importance of accuracy in statutory orders and allowed the taxpayer to seek rectification of the incorrect section mentioned in the order summary.
Case Background
The petitioner challenged:
- Order-in-Original dated 31.12.2023
- Summary of Order in Form GST DRC-07
Key issue:
- The summary (DRC-07) mentioned Section 74 on the first page
- However, the actual adjudication:
- Imposed penalty under Section 73(9)
- No finding of fraud/suppression to justify Section 74
Additionally:
- The petitioner had already lost appeal due to limitation
- Approached High Court seeking rectification of this discrepancy
Key Legal Issue
Whether a taxpayer can seek correction when:
- There is a mismatch between section mentioned in summary (DRC-07) and
- The actual provision applied in adjudication order
Arguments Presented
