Telangana High Court Allows Appeal Route in GST Assessment Challenge — Sri Sai Ram Traders Case

Case Overview

Case: Sri Sai Ram Traders Vs Assistant Commissioner (ST)
Court: Telangana High Court
Relevant Legislation: Section 73 of the Telangana Goods and Services Tax Act, 2017
Tax Period Under Dispute: April 2021 to March 2022
Nature of Order Challenged: Assessment Order dated 29.12.2025 along with summary in Form GST DRC-07

Background of the Dispute

The Telangana High Court recently disposed of a writ petition filed by Sri Sai Ram Traders, which had challenged an assessment order passed under Section 73 of the Telangana Goods and Services Tax Act, 2017. The order, along with the corresponding Form GST DRC-07, was dated 29.12.2025 and pertained to the tax period spanning April 2021 through March 2022. The demand raised through this order encompassed both tax liability and penalty.

The circumstances that gave rise to this litigation are noteworthy from a procedural standpoint and raise broader concerns about the manner in which GST authorities upload notices on the official portal — a matter that has been a source of confusion for assessees across the country.

The Core Issue: Misplaced Notice on the GST Portal

How the Notice Was Missed

The petitioner's central grievance revolved around a technical-cum-procedural lapse in the notice upload mechanism on the GST portal. According to Sri Sai Ram Traders, neither the business nor its accountant had any knowledge of the show cause notice that preceded the assessment order until the liability was actually crystallised.

The reason cited for this lack of awareness was that the show cause notice had been uploaded under the tab "Additional Notices and Orders" rather than the designated "Notices and Orders" tab on the GST portal. This seemingly minor distinction had significant consequences — the accountant, who routinely monitored the standard "Notices and Orders" section, did not come across the notice and therefore did not file any objections or reply in response.

This is a recurring concern in GST litigation: Notices uploaded under non-standard tabs or sections of the portal often escape the attention of assessees and their tax consultants, resulting in ex-parte orders being passed without the assessee having had a meaningful opportunity to respond.

Consequence of Non-Response

Since no reply or objection was filed by Sri Sai Ram Traders, the Assistant Commissioner (ST) proceeded to pass the impugned assessment order and issued the Form GST DRC-07 summary, thereby quantifying the demand for tax and penalty for the relevant period.

Upon learning about the order — through the accountant — the assessee chose to approach the Telangana High Court by way of a writ petition, challenging both the assessment order and the DRC-07 summary.

Proceedings Before the High Court

Arguments Advanced

The petitioner was represented by Mr. Mohammed Rafi, learned counsel appearing on behalf of Mr. Shaik Jeelani Basha, while the State Tax authorities were represented by Mr. Swaroop Oorilla, learned Special Government Pleader.