Telangana High Court Grants Two-Week Window to Appeal GST Order, Restrains Coercive Recovery — Tanishq Garments Vs Assistant Commissioner of Central Tax
Overview of the Case
The Telangana High Court recently disposed of a writ petition filed by Tanishq Garments against the Assistant Commissioner of Central Tax, directing the assessee to pursue the statutory appellate remedy instead of pursuing the constitutional challenge before the High Court. While doing so, the Court extended interim protection against coercive recovery measures for a period of two weeks, enabling the assessee to approach the appellate authority with all available grounds of law and fact.
The matter involved a challenge to a GST demand order as well as a bank account attachment effected through a garnishee notice, and also raised a significant constitutional question regarding the validity of a time-limit notification issued under the CGST Act, 2017.
Background and Reliefs Sought
Tanishq Garments, the petitioner before the Telangana High Court, had instituted the writ proceedings seeking multiple reliefs in connection with Order-in-Original No. 14/2024-25 issued in FORM GST DRC-07 dated 20.08.2024, bearing Reference No. ZD360824074279V, passed by the Assistant Commissioner of Central Tax.
The reliefs sought by the assessee in the writ petition were as follows:
"For the reasons stated accompanying in the affidavit, is humbly prayed that this Hon'ble Court may be pleased to:
- issue a Writ of Mandamus, or any other order or direction in the nature thereof, calling for the records relating to the impugned Order-in-Original No. 14/2024-25 in FORM GST DRC-07 dated 20.08.2024 bearing Reference No. ZD360824074279V passed by Respondent No. 1, and quash the same as being illegal, arbitrary. without jurisdiction, and contrary to Section 16(5) of the CGST Act, 2017;
- Consequently, issue a Writ of Mandamus, or any other order or direction in the nature thereof, restraining the Respondents, their officers. agents, and subordinates, from taking any further steps or proceedings in furtherance of, or towards recovery of the demand confirmed under, the impugned Order-in-Original in DRC-07 dated 20.08.2024, including but not limited to the bank attachment effected vide FORM GST DRC-13 dated 22-06-2026, and direct that the said attachment be forthwith lifted;
- Declare that the time-limit of six months prescribed under Notification No. 22/2024-Central Tax dated 08.10.2024, issued under Section 148 of the CGST Act, 2017, is ultra vires Section 148 of the Act and violative of Article 14 of the Constitution of India, insofar as it purports to extinguish the substantive statutory benefit conferred under Section 16(5) of the CGST Act, 2017, upon the lapse of the said period;
- Consequently, issue a Writ of Mandamus or order or direction in the nature thereof directing Respondent No. 1 to receive and consider, on merits and in accordance with Section 16(5) of the CGST Act, 2017, an application for rectification of the impugned Order-in-Original dated 19.08.2024, to be filed by the Petitioner, notwithstanding the expiry of the period prescribed under Notification No. 22/2024-Central Tax dated 08.10.2024;
Pass such other orders, writs, or directions(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case, and in the interest of justice."