Telangana High Court Permits Statutory Appeal Against GST Demand Where Former Tax Consultant Withheld Information from Assessee

Case Overview

Case Name: Sri Krishna Enterprises Vs Assistant Commissioner (ST) (Telangana High Court)
**Writ Petition No.😗* 29264 of 2026
Date of Order: 08/09/2026
Court: Telangana High Court

The Telangana High Court recently adjudicated a matter wherein an assessee sought relief from a demand order issued under Section 73 of the GST Act, citing a critical breakdown in communication by its former tax consultant. The Court, exercising its discretionary jurisdiction, provided the assessee with a structured opportunity to approach the statutory appellate forum rather than adjudicating the dispute on merits at the writ stage.

Background and Facts of the Case

M/s. Sri Krishna Enterprises, a proprietorship concern operated by Mr. Ashok Kumar Heda, filed a writ petition before the Telangana High Court challenging certain GST proceedings relating to the financial year 2021–22.

The impugned proceedings included:

  • Show Cause Notice along with FORM GST DRC-01 dated 24.09.2025, and
  • Order-in-Original along with FORM GST DRC-07 bearing Reference No. ZD361225086232I dated 23.12.2025

Both documents were issued by the respondent authority under Section 73 of the GST Act.

The writ petition sought issuance of a Writ of Mandamus or any other appropriate direction to set aside the aforementioned notices and orders. The petition specifically alleged that:

  1. The impugned notices and orders were issued in violation of the principles of natural justice, and
  2. The proceedings were unsustainable on merits.

The Assessee's Explanation for Delay

A central issue in this matter was the assessee's unawareness of the proceedings and the consequential delay in seeking appellate redress. M/s. Sri Krishna Enterprises submitted before the Court that its erstwhile tax consultant had failed to communicate the existence of the impugned order to the assessee.

The assessee came to learn of the order only upon engaging a new tax consultant, by which time a significant period had elapsed. Accordingly, by the time the assessee was in a position to act, the standard window for filing an appeal before the appellate authority had potentially lapsed, giving rise to a delay condonation issue.

This situation underscores a recurring practical concern in GST compliance — the risk faced by an assessee when its authorized representative fails to keep it duly informed about the progression of proceedings or the issuance of adverse orders.

Shift in Strategy: From Writ to Statutory Appeal

After the matter was heard for some time, the learned counsel representing M/s. Sri Krishna Enterprises made a significant shift in the litigation strategy. Rather than pressing the writ petition on its merits — which would have required the Court to examine the substantive allegations of natural justice violations and factual correctness — the petitioner opted to seek liberty to pursue the statutory appellate remedy.