Telangana High Court Upholds Primacy of Statutory Appellate Remedy in GST Demand Dispute — G K Infrastructure vs Assistant Commissioner of Central Tax

Case Overview

The Telangana High Court, in W.P. No. 35311 of 2025, addressed a writ petition filed by the assessee challenging a GST adjudication order along with its summary form. The Court, rather than delving into the substantive merits of the dispute, focused on the procedural question of whether the assessee ought to have first exhausted the statutory appellate channel available under GST law before knocking on the doors of the constitutional court.

The outcome was significant — the Court permitted the assessee to withdraw the writ petition and granted liberty to file an appeal before the appropriate appellate authority under Section 107 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017). The Court also issued a specific direction ensuring that the assessee would not be penalised for the time spent in pursuing the writ remedy.

Background and Facts of the Case

Parties Involved

• Petitioner: G K Infrastructure
• Respondents: Assistant Commissioner of Central Tax and others
• Court: Telangana High Court
• Petitioner's Counsel: Mr. Venkat Prasad, learned counsel representing M/s. P V Prasad Associates
• Respondent's Counsel: Mr. Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes & Customs (CBIC)

Nature of the Dispute

The assessee faced GST proceedings covering the tax period from June 2019 to October 2019. The department issued the following orders against the assessee:

1. Order-in-Original dated 20.12.2024 — passed under Section 73 of the CGST Act, 2017
2. Summary of Order in Form GST DRC-07 dated 31.01.2025

Quantum of Demand

The impugned orders collectively imposed the following liabilities on the assessee:

Aggrieved by the adjudication order and the consequential summary in Form GST DRC-07, the assessee initially filed a writ petition before the Telangana High Court under Article 226 of the Constitution of India, directly challenging both orders.

Legal Issue Before the Court

The central procedural question that emerged during the hearing was:

Whether the assessee should be permitted to withdraw the writ petition filed under Article 226 of the Constitution and instead pursue the statutory appellate remedy available under Section 107(1) of the CGST Act, 2017?

This question touched upon the long-settled legal principle regarding the exhaustion of alternative statutory remedies before invoking extraordinary writ jurisdiction.

Submissions Made Before the Court

Assessee's Position

The learned counsel for the assessee, after initial arguments, made the following submissions: