Shree Gajanan lndustries v. 1. The Assistant Commissioner

Petition under Article 226 o'f 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 Writ of Mandamus declaring the Notice dated 14.10.2025 issued UiSec.79(1)(c) of the Central Goods and Service Tax Act, 2017 by the 1st respondent to the Branch of Manager, Central Bank of lndia, Nizamabad Branch is highly illegal, arbitiary, u nco nstitutiona I and contrary to the Order F.No.GSTAT/Pr.Bench/Portal/125/25- 26, dated 24.O9.2025 on the file of the Department of Revenue Ministry of Finance and set aside the same. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be, pleased to grant stay of all further p'oceedings pursuant to the Notice daled 14.10.2025 issued U/Sec.79(1)(c) of the Central Goods and Service Tax Act, 2.017 by the 1st respondent pending Jisposal of the above writ petition. Counsel for the Counsel for the Petitioner: SRI V.V.N.NARAYANA RAO Respondent Nos.'t & 2: SRI DOMINIC FERNANDES, senior standing counsel for CBIC Counsel for the Counsel for the Respondent Nos.3 & 4: SRI K.DEVENDER, SC FOR TSCSC Respondent No.5: SRI B.MUKHERJEE FOR SRI N.BHUJANGA RAO, DEPUW SOLICITOR GEI,IERAL OF INDIA The Court made the following: ORDER THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH THE HON'BLE SRI JUSTICE G.M.MOHII'DDIN AND WRIT PETITION No.33352 of 2O25 ORDER: Learned counsel Sri V.V.N.Narayana Rao appears for the petitioner. Sri Dominic Fernaldes, learned Senior Standing Counsel for Centra] Board of Indirect Taxes ald Customs, appears for respondents No.l and 2 Sri K.Devender, learned Standing Counsel for Civil Supplies Corporation, appears for respondents No.3 and 4. Learned counsel Sri B. Mukherjee, representing Sri N. Bhujanga Rao, learned Deputy Solicitor General of India, appears for rcspondcnt No.5.

2. In the present writ petition, the garnishee notice under Section 79(1)(c) of the Central Goods and Services Tax Act, 2077 (hereinafter referred to as, "the Act"), dated t4.1o.2025, IS only under challenge wherein the petitioner's bankcr - Central Bank of India, Nizamabad, has been asked to maintain lien on the petitioner's account 2 towards recovery of tax of Rs.64,45,020/-. 1'his recovery proceedings are based upon the order-in-original dated

01.1i.2023 lor the period July 2Ol7 to March 2O2O as affirmed in -he order-in-appeal dated 10.05.20i14.

3. Lear:nr:d counsel for the petitioner subm:ts that 1O% of the ta-x <lues have been deposited as a prr:-deposit for filing the appeal (Annexure P.6) by February 2025. However, rr:spondent No.1 - Assistant Commissioner, has still issued notice under Section 79(1)(c) of tl'rr: Act in Form GST DRC- l3 on the petitioner's banker - Central Bank of India, Nizarnabad. Therefore, the petitioner has sought to assail the irnpugned garnishee notice.

1. Learn:d counsel for the petitioner subrniti; that the petitioner is willing to approach the learned Goods and Services Tax Appellate Tribunal (hereinafter rr'ferred to as, "the Appetlate Tribunal"), but it has not started functioning

5. Learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs appearing for res;pondents --'7 No.1 ald 2, however, has drawn the attention of this Court to the order dated24.09.2025 (Annexure P.5) issued by the I I Appellate Tribunal. It is submitted that the period for filing appeals against the orders of the appellate or revisional authorities issued on or after O1.O2.2O24 but on or before

31.O5.2O24 is between the period commencing on 0l.0l.2026 and ending on 31.01.2026 or any date succeeding such date being not later than 30.06.2026. It is submitted that the learned Appellate Tribunal commenced entertaining filing of appeals. Therefore, the petitioner should approach the learned Appellate Tribunal with the statutory pre-deposit. If the petitioner has meanwhile made the pre-deposit as per Annexure P.6, it should approach respondent No. 1 for stay of the recovery proceedings in Form GST DRC-13.

6. Having regard to the aforesaid facts and circumstances noted above, since the petitioner is inclined to avail the remedy of appeal under Section 172 of the Act before the learned Appellate Tribunal against the order-in- appeal and claims to have made the pre-deposit also, the I I .t \ - petitioner is granted liberty to approach respcndent No.1 for stay of the impugned recovery proceed..ngs. The petitioner may approach the learned Appellate 'lribunal by filing an appeal within the window period prescribed under the order dated 24.O9.2025 against the impugnr:d order-in- appeal. Needless to say, if the petitioner is able to satisfy respondent No.1 that the statutory pre-deposit. has been made lor trrreferring the appeal before the learne,l Appellate Tribunal, respondent No.1 sha1l take a decision on the stay of the recovery proceedings within a period of two ',r,eeks therealte'r. I 7 . Thc writ petition stands disposed of a<:cordingly. Thele shall be no order aE to costs Miscellaneous applications pending, ii eLny, shall stand closed. ,TRUE COPY// SD/.P. )ONNA KRISHNA ANT REGISTRAR ASSI \ b ECTION OFFICER ) To 1 2 3 4 5 The Assistant Commissioner, (Central Tax), NizamabJO ,,r,r,on, Medchal- Commissioner-ate, KNAR Estate, 3rd Floor, Nizamabad. The Joint Conrmissioner of Central Tax and GST (Appeals-l ), Hyderabad- Commissionerate, 7th Floor, GST Bhawan, Bhasheerbagh, llyderabad. lhe Jhe Man:rging Director, Telangana State Civil Supplies Corporation Ltd, O/o Civil Supplies Bhawan, Punjagutta Road, Somajiguda, t-lyderabad. The District l\,4anager, Telangana State Civil Supplies-Corporition, Nizamabad District. The Secretary (Finance), Union of lndia, tVinistry of Finance, North Block, Central Secretariat, New Delhi-1 10001 . \ t

6. 7.

8. o 10 One CC to SRI V.V.N.NARAYANA RAO, Advocate [OPUC] One CC to SRI DOMINIC FERNANDES, senior standing counsel for CBIC loPUCl One CC to SRI K.DEVENDER, SC FOR TSCSC IOPUC] One CC to SRI N.BHUJANGA RAO, DEPUry SOLICITOR GENERAL OF rNDIA [OPUC] Two CD Copies PSK. BS \ I HIGH COURT DATED:0411112025 ORDER WP.No.33352 of 2025 I 1HE :l l'4 L o,) (i \ 1g r,i[\l 2fr15 .n ,.' r)p Son-rr"-(' DISPOSING CIF THE WRIT PETITION WITHOUT COSTS (r (9 l-\ \o \