Case Details: Sri Sai Krishna Enterprises vs. Superintendent of Central Tax (2026) 41 Centax 397 (Telangana)
Judiciary and Counsel Details
- Aparesh Kumar Singh, CJ. & G.M.Mohiuddin, J.
Facts of the Case
A show cause notice in Form GST DRC-01 alleged short payment in GSTR-3B, and an order-in-original was passed thereafter alleging short payment of tax and excess Input Tax Credit (ITC). The petitioner asserted that it could not participate in the adjudication proceedings initiated by the said notice on account of non-service of proper notice, which led to imposition of tax liability with interest and penalty. The petitioner referred to a payment receipt showing payment much before issuance of the show cause notice and order-in-original and submitted that the amount alleged towards short payment in GSTR-3B had already been paid. It was further submitted that representation had been made to drop the order and revoke the bank attachment, but no heed had been paid. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that, prima facie, the amount forming the subject matter of the show cause notice appeared to have been paid earlier. It held that the petitioner was to be allowed an opportunity to file a rectification application under Section 161, read with Sections 50, 73 and 122 of the CGST Act and Telangana GST Act in the prescribed form containing details and proof of payment of tax much earlier than initiation of the adjudication proceedings in order to relieve itself from the tax liability. The High Court further held that the proper officer was required to consider the rectification application in accordance with the law within a reasonable time. Accordingly, the writ petition was disposed of with liberty to file a rectification application.
