Challenge against GST Assessment Order: Supreme Court Dismisses SLP Challenging Telangana HC Order [Read Order]

The Supreme Court dismissed the Special Leave Petition (SLP) challenging the Telangana High Court order dismissing the Writ Petition filed, which challenged an assessment order and penalty passed under the Goods and Services Tax (GST) Act, 2017.

The Court of Justice J.B. Pardiwala and Justice Vijay Bishnoi held that there is no good ground to interfere with the impugned order passed by the High Court.

The High Court upheld the Revenue's contention regarding the maintainability of the writ petition, directing the petitioner to approach the statutory appellate authority instead.

M/s. Poddaturi Rajeshwar, the petitioner, had approached the High Court challenging an "unsigned" assessment order dated 10.07.2023 passed under Section 73 of the GST Act for the assessment year 2017-18, and a subsequent penalty order (DRC-OI) dated 29.09.2023. The orders levied a tax demand of Rs. 19,32,467.36 along with penalties of Rs. 96,623/- each under CGST and SGST.

The petitioner, represented by Mr. Ganesh Bhujangarao Vadduri, argued that the impugned orders were illegal, arbitrary, and violated the principles of natural justice and Articles 14, 19(1)(g), 21, 265, and 300-A of the Constitution. The petitioner further submitted that bankers were threatening to attach accounts for recovery and prayed for a writ of mandamus to set aside the orders.

The Revenue, represented by Mr. K. Sai Akarsh, Government Pleader for State Tax, opposed the petition. It was submitted that the writ petition was filed more than two years after the passing of the impugned order and was therefore barred by delay. The Revenue relied on the landmark judgment of the Supreme Court in Commissioner (CT) LTU, Kakinada v. Glaxo Smith Kline Consumer Health Care Limited to argue that the petition was not maintainable.

The High Court observed:

“Having considered the submissions of the learned counsel for the parties, we are not inclined to entertain the instant Writ petition assailing the impugned order dated 10.07.2023 in view of the ratio in Glaxo Smith Kline Consumer Health Care Limited (supra). It is up to the petitioner to approach the statutory authority if permissible in law against the impugned order.”

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