THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN Writ Petition No.24098 of 2025

Order

:

Heard Mr. Kailash Nath P.S.S., learned counsel for the petitioner; Mr. Swaroop Oorilla, learned Special Government Pleader of State Tax appearing for respondents No.1, 2 & 4 and Mr. Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC) appearing for respondent No.3.

2. Petitioner-company is a registered tax payer having GSTIN No:36AASCS5503K1ZW. It has been subjected to the proceedings under Section 73 of the Central Goods and Services Tax Act, 2017 (for short ‘CGST Act’) for the vide financial year 2020-2021 show cause notice dated 27.11.2024, issued by Assistant Commissioner (CT), Nampally-1 Circle, Hyderabad, in Form GST DRC-01.

Thereafter, the order-in-original was passed on 28.02.2025, by the Assistant Commissioner (ST) GST, Abids Division, Hyderabad, respondent No.2, imposing liability of Rs.96,30,225.26 ps. Petitioner has assailed it in the instant writ petition on the ground that investigation, in respect of availment of Input Tax Credit (ITC) by the petitioner on invoices, without receipt of goods or services from certain suppliers, was conducted and concluded by respondent No.3- Additional Director, Director General of GST Intelligence (DGGI), under the provisions of Sections 74(5) and 74(6) of the CGST Act and the corresponding provisions of Telangana Goods and Services Tax Act, 2017 (for short ‘the TGST Act’), after the petitioner paid GST of Rs.1,50,85,580/- along with interest of Rs.41,33,682/- and penalty of Rs.22,62,838/-, and submitted letters dated 29.12.2022, 08.03.2022, 01.12.2023 and 02.02.2024, to the Principal Commissioner, Hyderabad CGST Commissionerate, requesting him to close the proceedings without issuance of any show cause notice. Letter dated 13.02.2024, issued by the Additional Director, DGGI, at para 3 reads as under:

“Accordingly, the subject case proceedings against M/s. Sensation Infracon Pvt. Ltd. (36AASC85503K1ZQW) were concluded under the provisions of Section 74(5)/74(6) of CGST Act, 2017 and corresponding provisions of Telangana GST Act, 2017. In this connection, it is also informed that conclusion of case proceedings in the subject case is limited to the ITC received from the above mentioned suppliers and that too the amount mentioned only. With regard to ITC availed on the basis of other invoices or suppliers, the jurisdictional officers may take action as deemed fit in case of any irregularities. The above conclusion is without prejudice to any action the taxpayer is liable under the CGST Act/Telangana GST Act or any other Act in force.”

3. Learned counsel for the petitioner submits that though the investigation relating to the said invoices for the period November, 2021, to January, 2024, was closed, the State Tax authority, respondent No.2, issued show cause notice dated 04.08.2022, for the subject period April, 2020, to March, 2021, and proceeded to impose the above tax liability along with penalty without application of mind.

Therefore, the petitioner has approached this Court.

4. Learned counsel for the petitioner has taken a plea that the show cause notice was not served on the petitioner by post or email but merely uploaded on the Additional Notices and Orders tab of the GSTIN portal. Therefore, he was not aware of the show cause notice dated 04.08.2022. The impugned proceedings have therefore, been assailed.

5. Learned Special Government Pleader for State Tax has straight away drawn the attention of this Court to Section 169(1)(d) of the CGST Act and submitted that any decision, order, summons, notice or other communication under the CGST Act or the rules made thereunder would be treated to be served by any of the methods stated in Clauses (a) to (f). Clause (d) specifically provides for making it available in common portal. Sub-section (2) thereof provides that every such decision, order, summons,