Telangana High Court Permits Statutory Appeal Against Allegedly Unsigned GST DRC-07 Order, Grants Delay Condonation Liberty

Case Background

Case Name: Seiko Polyclosures Vs Deputy Commissioner (ST) (Telangana High Court)

The Telangana High Court recently took up a writ petition filed by an assessee challenging a demand order issued in Form GST DRC-07 dated 10.03.2026, pertaining to the tax period 2019–20. The core grievance raised by the assessee was that the impugned DRC-07 was an unsigned order, rendering it procedurally defective and legally vulnerable. However, the matter took a significant turn during the course of the hearing, when the assessee's counsel shifted the litigation approach entirely — from seeking a writ-based remedy to requesting judicial liberty to pursue the statutory appellate route instead.

The Court, in its characteristic approach of preserving the integrity of the statutory appellate framework under GST law, disposed of the writ petition by granting the necessary liberty to the assessee to file a formal appeal, along with appropriate directions regarding delay condonation and pre-deposit compliance.

Facts of the Case

The assessee, M/s. Seiko Polyclosures, approached the Telangana High Court by way of a writ petition, challenging the order passed in Form GST DRC-07 dated 10.03.2026 issued by the Deputy Commissioner (ST)-2, Hyderabad, for the tax period 2019–20.

The primary basis of the challenge was the allegation that the demand summary order in Form GST DRC-07 was unsigned, thereby making it procedurally infirm and legally unsustainable. The assessee initially appeared to press for a substantive ruling from the High Court on the merits of the writ.

However, after preliminary arguments were exchanged, the learned counsel representing the assessee reconsidered the approach and chose not to press the writ petition on its merits. Instead, the counsel sought the Court's permission to pursue a regular statutory appeal before the appropriate appellate authority. Additionally, the counsel acknowledged that some delay might have arisen in approaching the appellate authority within the prescribed timeline, and accordingly sought a direction that such delay be considered sympathetically by the appellate forum.

Contentions Raised by the Assessee

The assessee's counsel submitted the following before the Telangana High Court:

  • The demand summary issued in Form GST DRC-07 dated 10.03.2026 was defective on the ground that it was an unsigned order, making it procedurally invalid.
  • Due to intervening circumstances and the pursuit of the writ remedy before the High Court, some delay had taken place in approaching the appellate authority within the statutory time limit.
  • The assessee sought explicit judicial liberty to file a formal statutory appeal before the competent appellate authority.
  • A direction was sought requesting the appellate authority to consider the delay in a sympathetic manner, keeping in view the facts and circumstances including the pendency of the writ proceedings.

Revenue's Stand

The learned Special Government Pleader appearing on behalf of the State Tax authorities adopted a straightforward and cooperative stance before the Court:

  • The Revenue submitted that the assessee was fully at liberty to prefer a statutory appeal against the impugned Form GST DRC-07 order before the appropriate appellate authority.
  • It was further submitted that the assessee could freely raise all available grounds — both on questions of law and questions of fact — pertaining to the subject tax period of 2019–20 before the appellate forum.
  • The Revenue did not oppose the granting of such liberty by the Court.

Observations of the Telangana High Court

The Court, upon hearing both sides, made the following key observations: