Telangana High Court Grants Assessee Liberty to Pursue Statutory Appeal Against Ex-Parte GST Assessment with Delay Condonation

The intersection of digital compliance and procedural justice under the Goods and Services Tax (GST) regime frequently leads to disputes regarding the proper service of notices and the validity of adjudication orders. In a recent judicial development, the Telangana High Court addressed a critical writ petition in the case of Kabra Tyre Marketing Vs State Tax Officer-I, where an assessee challenged an ex-parte best judgment assessment.

The core of the dispute revolved around alleged procedural lapses by the revenue department, specifically concerning the mode of serving the assessment order under Section 169 of the IGST/CGST/SGST Act 2017, and the purported absence of a valid Document Identification Number (DIN) on the issued notices. Ultimately, the High Court permitted the assessee to bypass the writ jurisdiction in favor of exhausting the statutory appellate remedy, granting specific allowances for the condonation of delay.

This comprehensive analysis delves into the factual background, the legal arguments presented, and the broader implications of this judicial directive for GST compliance and appellate procedures.

Factual Matrix of the Dispute

The litigation was initiated by the assessee, M/s. Kabra Tyre Marketing, challenging the actions of the State Tax Officer-I pertaining to the tax period 2021-22. The revenue department had finalized a best judgment assessment against the assessee on an ex-parte basis.

The specific documents contested by the assessee included:

  • Notices issued by the department dated 11.06.2025.
  • The final ex-parte assessment order dated 30.12.2025.
  • The accompanying summary of the order issued in Form GST DRC-07, also dated 30.12.2025.
  • All related proceedings culminating on 30.12.2025.

The assessee approached the Telangana High Court seeking a Writ of Mandamus, praying that the court declare the actions of the respondent as legally invalid and subsequently quash the ex-parte order and the accompanying summary in Form GST DRC-07.

The assessee's challenge was mounted on two primary legal pillars, both of which highlight significant procedural safeguards embedded within the GST framework.

1. The Controversy Surrounding Service of Notice (Section 169)

The first major contention raised by the assessee pertained to the methodology adopted by the revenue department for serving the assessment order. The assessee argued that the department merely uploaded the ex-parte order dated 30.12.2025 on the common GST portal.