Telangana High Court Relegates Assessee to GSTAT: Writ Petition Against GST Appellate Order Dismissed

Case Reference

M/s. Ascent Telecom v. Union of India & Others — Telangana High Court

Overview

The Telangana High Court recently declined to exercise its extraordinary writ jurisdiction in a matter where an assessee sought to challenge a GST appellate order that had originated from departmental review proceedings. The Court firmly directed the assessee to avail the statutory remedy before the Goods and Services Tax Appellate Tribunal (GSTAT), reinforcing the well-established principle that writ courts should not substitute themselves for statutory appellate forums where efficacious alternative remedies are available under the law.

The decision serves as a significant reminder that assessees aggrieved by orders passed under the Central Goods and Services Tax Act, 2017 (CGST Act) must first exhaust the remedies available within the GST framework before approaching the High Court under Article 226 of the Constitution of India.

Background and Facts of the Case

M/s. Ascent Telecom filed a writ petition before the Telangana High Court seeking to challenge the following:

  • Appellate Order dated 11.03.2025 passed in Appeal No. 133/2024 (SC), bearing DIN: 20250356DN0000717937
  • The said appellate order arose from a Review Order bearing No. 123/2024-2025 (GST) – OIO dated 05.07.2024, purportedly issued under Section 107(2) of the CGST Act, 2017

The assessee's writ petition contained the following prayer before the Court:

"For the reasons stated in the accompanying affidavit, it is most humbly prayed that this Hon'ble Court may be pleased to issue an appropriate writ, order or direction, more particularly a Writ of Mandamus, declaring the Appellate Order dated 11.03.2025 passed by Respondent No.2 in Appeal No.133/2024 (SC) DGST bearing DIN:20250356DN0000717937 arising from the review Order bearing No.123/2024-2025 (GST) –OIO dated 05.07.2024, purportedly issued by Respondent No.4 under Section 107(2) of the CGST Act (as inferred from the face of order dated 11.03.2025), and as illegal, arbitrary, wholly without jurisdiction, barred by limitation under Section 73 read with the Second Proviso to Section 107(11) of the CGST Act, 2017, violative of principles of natural justice, and thereby set aside the same, in the interest of justice."

Grounds Raised by the Assessee

The assessee pressed the following contentions before the High Court: