The High Court · 2025

Trident Fine Chem and Laboratories, SY NO 296l4lE AND 296/7/3, D.NO--16- lOCiq, tOA, Boltaram Village, Jinnaram Mandal, [/edak, Telangana - 502 319 Represent"O UV iis Proprletor Shri. Anil Kumar Towar, Latg RqO.lu.pathi D forirai, nged i5out 64Y6ars, R/o. H No. 6/9 Trident House, Balaji Hills, Near Cayitr, darden, Nizampet Road, VTC, Kukatpally, Hyderabad ...PETITIONER AND 1 The Assistant Commissioner of Central Tax, Jeedimetla GST Division, H. No. B-i-;iL:,- AOitVJ to*ute., Srisai Enclave, Old Bowenpally, Secundrabad- 50001 1

2. The Assistant Commissioner of Central Tax., Medchal Commissionerate, GST Bhavan, 1 1 -4-64918, Lakdi-ka-Pool, Hyderabad-S0O 004'

3. Union of lndia, tvlinistry of Finance, Rdpresented by its Secretary, North Block, New Delhi-110 001

4. lndian Bank Limited, Secunderabad branch, P B No. 1619201, Karan Centre, SJroiini Oe, fu;b, kalasiguda, Secunderabad, Telangana 500 003 Represented bY its Manager ...RESPONDENTS petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order, or direction more particularly one in the nature of a Writ of Mandamus a. Declaring that the impugned order in the Form DRC-07 vide Ref No. 2D3608241405871 dated 3olo8l2o24 along with o-l-o No. 9812024- GST(AC) dated 2610812024 passed by the 1st Respondent under the provisions of CGST/TGST Act, 2O't7 as being void, arbitrary, illegal, without jurisdiction, violative of the principles of natural justice apart from being violative of Articles i4, 19(jXS) and 265 of the Constitution of lndia, and to consequently set aside the same and pass such further or other order(s) as this Hon'ble Court may deem fit and proper in the circumstances of the case. b. Declaring that recovery notice issued in Form DRC -13 daled O1l1Ol2O2S and another recovery notice in DRC-13 daled 0ll1Ol2025 issued by the Respondent No.2 to the Respondent No.4 under the provisions of CGST/TGST Act, 2017 as being void, arbitrary, illegat, without jurisdiction, violative of the principles of natural justice apart from being violative of Articles 1a, 1 9(1 Xg) and 265 of the Constitution of lndia, and to consequently set aside the same c. Directing Respondent No. 'l to consider and apply the retrospective amendment made to section 16(4) of CGST Act,2017 by inserting section 16(5) through section 118 of Finance Act, (No. 2),2024. lA NO: 1 OF 2025 Petition under Section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High court may be pleased to suspend the notice in Form DRC-13 dated 01lo7t2o25 and 07t1ot2025 issued by the Respondent No.2 to the Respondent No.4 lA NO: 2 OF 2O25 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High court may be pleased to stay operation of impugned Order in Form GST DRC-07 vide Ref No. 2D3608241405871 dated 30t08t2024 atong with O-t-O.No. 9S/2024-GST(AC) dated26lO&l2124passed by the Respondent No. 1 f ; i; .! j i II Ir i I i ,{ ; $ II I { i It I I I I I $ i I Counsel for the Petitioner : SRI P. VENKATA PRASAD, COUNSEL REPRESENTING M/S P V PRASAD ISSOCIATES counsel for the Respondent Nos. 1 &2: sRl DoMlNlc FERNANDES (senior standing counsel for CBIC) counsel for the Reqpondent No.3 : SRt B.JITHENDER STANDTNG couNSEL FOR CENTAL GOVERNMENT Counsel for the Respondent No.4 : --- The Court made the following: ORDER I AT F{YDERABAD Writ Petition No.34043 of 2025 Dated: t2.l2.Z0ZS Between: Trident Fine Chem and Laboratories Rep. by its ProDrietor Shri anif fcumar Towar, S/o.late Raghupathi D.Towar. The Assistant Commissioner of Central Tax, Jeedimetla GST Division Secunderabad and 3 others Order: Petitioner Respondents Heard Mr' p.venkata prasad, learned counsel representing M/s. p.v.prasad Associates for the petitioner and Mr' Dominic Fernandes, learned Senior Standing counsel for central Board of Indirect 'faxes and cusroms (.BIC) appearing for respondents No.1 and 2.

2. T'his writ Petition is fired for the following rerief; "to issue a wrig order or direction more particularly one in the nature o[a \ffrit of Mu.rJu_rr, / I { ..r.. a. Declaring that the impugned order in the Form DRC-07 vide Ref.No. 2D360824140587L dated 30.08.2024 along rvith O-l-O No.98/2024- GST(AC) dated 26.08.2024 passed by the 1" Respondent under thc provisions of CGST/TGST Act, 2017, as being void, arbiuary, illegal, without jurisdiction, violative of the principles of natural justice apart from being violative of Articles 1.4, t9(t)(g) and 265 of the Consdrution o[ India and to consequendy set aside the same and pass such further or other orders as this Hon'ble Court may deem fit and proper in the circumstances oI the case. b. Deciaring that. recovery notice issued in Form DRC-13 dated 01.'10.2025 and another recovery notice in DRC-13 dated 07.10.2025 issued by the Respondent No.2 to the Respondent No.4 under the provisions o[ CGST/TGST Act, 2077, as being void, arbittary, illegal, without jurisdiction, violative of the principles of natural f ustice apart from being violative of Articles 1a, 19(1)(g) and 265 of the Constitution of India and to consequendy set aside the same and pass such further or othcr orders as this Hon'ble Court may deem fit and proper in the circumstances of the case. c. Directing Respondent No.1 to consider and apply the retrospective amendment made to Section 16(4) of CGS'I' Act, 201.7, by inseting Section 16(5) through Section 118 of Finance Act (l.{o.2), 2024 and pass fresh ordcr if necessary."

3. Reference is madc to this Court's eadier order dated 1,2.1,1,.2025,which reads as under: "Learned counsel Sri P.Venkat Prasad, representing M/s. P.V.Prasad Associates, appears for the petitioner. t i a a t ..2.. Sri Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxcs and Customs, appears for Central Tax. Sri BJithender, leamed Central Government Counsel, appears for Union of India. The order-in-original dated 26.08.2024 assailed in S7.P.No.34043 of 2025 and the order-in-original dated 24.04.2024 assailed in W.P.No.34047 of 2025 both relate to the same financial year 2079-2020 and on the same subject o[ irregular availment of input tax credit @elated Eling of GSTR returns in violation of Section 1,6$) of the Central Goods and Services Tax Act, 2077 Qtereinafter referred to as, "the Act"), which was discovered in one case in the course of scrutiny and in the other case on audit objection. Both lay down same tax liabiliry under the Central Goods and Services Tax Act, 201.7, the Telaflg n Goods and Services Tax Act,2017 and the Integrated Goods and Services Tax Act, 2017. On issuance o[ the garnishee notice in Form GST DRC -13 on 01.10.2015 /07.10.2025 in the respective writ petitions, the petitioner has approached this Court as it had not participated in the proceedings. In W.P.No.34056 of 2025 the order-in-original dated 1'1.10.2023 covers the tax period 201.8-2019, but again in this case the petitiooer allegedly came to know of the proceedings only upon issuance o[ Form GST DRC -13 on 01.10.2015 /07.1,0.2025. One of the grounds for assailing the order-in- original in !7.P.No.34056 of 2025 is the amendment to Section 16(a) of the Act with retrospective effect from 01,.07.2017 followed by the circular dated 1,5.1,0.2024, whereby the last date for filing monthly returns for the financial year 201,7-2018 onwards to 2020-2021 would be 30.11.2021,. If the rerurns are frled vdthin the cut-off date, it would be treated as rvithin time. It is the case of the petitioner that the impugned orders-in-original treat the belated filing of GSTR returns in violation of Section 16(4) of the Act z:4:: without taking note of the amendment rvhich came into force on27.09.2024, though after passing of the impugned orders-in-original, but rvith retrospecLive effect. The petitioner, being aggrieved on the above t\ counts, has preferred these rvrit petitions. Learned Senior Standing Counsel appearing for Central Tax submits that he is not in a position to dispute that rwo orders-in-original have been passed coterirrg the same frrancial year 201,9-2020, rvhich require to be revised or rectified by the appellate auihority or the proper officer as the case may be' He, however, submits that the benefit o[ rectification under circular dated 08.10.2024 rvas available to the petitioner to avail the reuospecti'u'e amendment of ^Section 1,6$) of the Act within six months by Frling a rectification applicarion before 01.04.2025, rvhich it missed. However, he seeks time to obtain instructions as regards \W.P.Nos -34043 arrd 34047 of 2025 aod also \W.P.N o.34056 of 2025. Learned Senior Standing Counsel appearing for Central Tax further submits that the respondent authorities may be allowed to make necessary rer''ision or rectification as respects the impugned orders-in- original in the meantime. The respondent authorities are the matters aPPear on 08J'22025'" : ^t liberty to do so' 4 Learned Senior Standing Counsel for CBIC submits that the irnpugned Order-in-Original dated 26.08.2024 has been rectified. The rectification ofder dated 26.11.2024 has dropped the demand against the petitioner uide Show Cause Notice dated 29.05.2024 resulting in nullifyi.g of the duplicate Order- in-Original dated 26.08.2024. The same has also been brought on record by way o[ a counterafftdavit.

5. Learned counsel for the petitioner, therefore, does not press the Writ Petition, which is accordingly disposed of as such. No costs As a sequel, miscellaneous petitions, pending rf any, stand closed. SD/.L. VIJAYA LAXMI ASSISTANT REGISTRAR G //TRUE COPY// SECTION OFFICER To,

1. The Assistant Commissioner of Central Tax, Jeedimetla GST Division, H. No. e-i-1111,- AOitVJ towers, Srisai Enclave, Old Bowenpally, Secundrabad - 50001 1

2. The Assistant Commissioner of CentralTax., tVledchal Commissionerate, GST Bhavan, 11'4-649t8, Lakdi-ka-Pool, Hyderabad-SO0 004'

3. The Secretary, Union of lndia, Ministry of Finance, North Block, New Delhi- 1 10 001

4. The Manager, lndian Bank Limited, Secunderabad branch, P B. No' 1619201, Karan Ceritre, Sarojini Devi Road, Kalasiguda, Secunderabad, Telangana - 500 003

5. one cc to tvl/S P v PRASAD ASSOCIATES Advocate [oPUC] 6. One CC to SRl. DoMlNlc FERNANDES (senior standing counsel for CBIC)Advocate [OPUCI

7. One CC to SRI B.JITHANDER CENTAL GOVERNMENT STANDING COUNSEL 8. Two CD Copies [39, sE HIGH COURT DATED i1211212025 '( t rlE SI -\.., fli;",. .r i. 0 5 ri.B /ii2ii ;i C) ( * ORDER WP.No.34043 of 2025 I a I t :l i i: I DISPOSING OF THE WRIT PETITION WITHOUT COSTS ,c -g qr$