WP/3448/2026 of M/s. P. Yellaiah Vs Goods and Services Tax Network (GSTN) on 6 February 2026

13447 1 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE SIXTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 3448 OF 2026 Between: l\/is. P, Yellaiah, rep. by its Proprietor, Ivlr. Yellaiah Pallapu, 13-62511511OO, Telecom Colony, Karwan, Hyderabad, Telangana-500 006. ...PETITIONER AND

Goods and Services Tax Network (GSTN), Worldmark '1 , Aerocity, lndira Gandhi lnternational Airport, New Delhi, lndia-1 10037. Assistant Commissioner (State Taxes), Mehdipatnam-ll Circle, Charminar Division, Hyderabad. State of Telangana, rep. by its Secretary to Government (Revenue) CT-ll, Commercial Taxes / State Tax Department, Secretariat, Hyderabad.

4. Union of lndia, rep. by its Secretary (Finance), Ministry of Finance, North Block, New Delhi-1 10 001 ...RESPONDENTS Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction to direct- (a) the 1"t Respondent to provide the Petitioner an effective remedy for filing the appeals to the Appellate Authority against the impugned orders dated 3.9.2025 passed by the 2nd Respondent under Section 74 of Central Goods and Services Tax Act, 2017 and also under Telangana Goods and Services i l I lil

Tax Act, 2017 fot the tax periods 2022-23 & 2024-21 by disputing the tax, penalty and interest; or (b) alternatively grant the liberty by permitting the pe ,l tioner to submit the manual Appeal before the Appellate Authority dispu ng the case on tax, penalty and lnterest under the Central Goods and S r rvices Tax Act, 2017 and also under Telangana Goods and Services Tax ,,ct, 2017 against the order of the 2nd Respondent dated 3.g.2025. Counsel for the Petitioner: SRI K. P. AMARNATH REDDY Counsel for the Respondent No.1 : SRI DOMINIC FERNANI) :S, SENIOR S.C. FOR CE IC Counsel forthe Respondent No.2 & 3: SRI T. CHAITANYA I IRAN, AGp REPRESENTING SRI SWAROOP OORII- .A, SPECIAL GOVERNMENT PLEADER FOF STATE TAX Counsel for the Respondent No.4: SRt B. MUKHARJEE, Rl: ,RESENTING SRI N. BHUJANGA RAO, DEPUW SOL|CITOR GEN[: tAL OF tNDtA The Court made the following: ORDER

IN THE HIGH COURT FOR THE STATE OF TELANCANA AT HYDERABAD THE HONOURABLE SRI.IUSTTCE P.SAM KOSHY ANT) TIIE HONOURABLE SRI.IUSTICE NARSING RAO NANDIKONDA Writ Petition No.3448 of 2026 Dated: 06.02.2026 Between: Mr.P.Yellaiah AND Goods and Serviccs Tar Netu'ork (GSTN), Worldmark l, Aerocity, Indira Gandhi Intl.Airport, New, Delhi, India - t l 0 ()17 and others. . Petitioner . . . Respondents ORDER: (per Hon'ble Sri .lustice l'.Sum Koshy) Ileard Mr.K. P.Amarnath Reddy, Iearned counsel lor the petitioner and Mr.Dorninic F ernandes, learned Senior Standing Counsel lor CBIC appearing on behalf of respondent No. l; Mr.1'.Chaitanya Kiran, learned Assistant Govemment Pleader representing Mr.Swaroop Oorilla, leamed Special Govemment Pleader for State Tax appearing on behalf of respondent Nos.2 and 3 and Mr.B.Mukharjee, leamed counsel reprcsenting Mr.N.Bhujanga Rao, leamed Deputy Solicitor General of India appearing on behalf ol respondent No.4. Perused the record

2. The pctitioner clainrs to have paid the otrl-'anding dues afler issuance ol the show cause notice during the pt'l cierlcy of the adjudication proceedings. but the order-in-o i-tinal datcd 03.09.2025 has irnposed the tax liability of Rs.i4,73, ,50/-. similar arnount ol penalty under Section 7aQ) of the Cent'r I Goods and Services Tax Act, 2017, and interest under Sectiott i 0 of the said Act amounting to Rs.2,0 I ,9711- relalable to the peli rd April and Scptember', 2024.'I'|re petitioncr had been rnaking c r respondence with the GSTN to perrnit it to file ar.r appeal with,r.r pre-deposit, as the outstanding tax dues had already been paid iLr d no case of penalty could be made out. However, in that proc :ss, time for filing the appeal expired. It is contended by the Ie r ned counsel lor the petitioner that the petitioner has good grour Is to explain the delay. But, the petitioner rnay not be compellec to tnake the pre-deposit of l0% against the penalty amount in he aforesaid circumstances.

3. Learned Senior Standing Counsel appear Ig for GS'IN submits that there is no power with the GSTN to e.( lnpt the pre- deposit for filing the appeal

4. Lcarned Assistant Govet'nment Plcader appearing for the State Tax also submits that the pre-deposit is a prerequisite for filing the appeal. Whetl'rer the deposit of tax during the adjudication proccedings could relievc thc petitioner ol the liability of penalty is a mattcr to be decided by the appellate authority only upon the appeal being filed rvith pre-deposit. The petitioner, thcretbrc, caunot clairr any exctnption fiorn making the pre-dcposit. I-carned Assistaut Covernltrent Pleader also submits that the petitioner mal be allowed liberry to approach the appellate authority witli an explanation fbr the delay within a stipulated period and take all such grounds of law and facts in its appeal.

5. ln the lacts and circumstances noted above, since there is no exemption lor any taxpayer fiorn rnaking pre-deposit while filing the appeal under the GST regime, u'hether the liability of penalty or tax was rightly imposed or not would be the subject matter of appeal on merits, the same cannot be a ground to seek exemption from making the pre-deposit. However, since the l I petitioner had been in correspondence with the respondent authorities on this issue and has rnissed the cut oft't lte fbr frline the appeal, we glant tiberty to the petitioner to ii : the appcal s'ithin a pcriod of two weeks rvith statutory depo:i :ncl a dcllr condonation application. Thc petitioner r-r-ray take al ;ucir grounds of law and lacts in the metno ol appcal as are l. ailable to it Ncedless to say, the appcllate nuthority u'otr lcl :onsider the qucstion of delay sympathctically taking into lLccortnt the albresaid lacts and circumstanccs and i{-he is satisll -' I on the point ol delay, proceed to decide thc appeal on merits I accordance u,ith law within a reasonable time, preferably. "ithin twclve rveeks lrom the date of receipt ofa copy of this or<lt r

6. The writ petition is accordingly disposed o I Consequently, rniscellaneous petitions pend irr ,. if any, shall stand closed. There shall be no order as to costs. //TRUE COPY// The Goods and Services Tax Network (GSTN), w sDr K.BHAVANlsry4ryI AS:J STANT REGISTRAR \ --- ..\'+=:=-' lSECTION OFFICER I r ark 1, Aerocity, lndira {t To

Gandhi lnternational Airport, New Delhi, lndia-1 1003

2. TheAssistantCommissioner(StateTaxes),Mehdipatrim-llCircle,Charminar Division, HYderabad.

3. The Secretary to Govemment (Revenue) CT-l.l,.Corr nercial Taxes / State " ili o-!-pirti"6ni, sGie of ielang'ana' Secietariat, Hvd: abad'

4. The Secretary (Finance), Ministry of Finance' Uniorr of lndia' North Block' New Delhi-110 001 : : " " :: l" : :: : :, :y:::: : :"'"'":::::i', : :'"'"::,o P u c, l,*i,iH :n

::'::lf '

7. Two ccs to sRr swARoop ooRrLLA, speciar Government preader for State Tax, High Court for the State of Telangana at Hyderabad. [OUT] / ./ 8 O,rp CC to SRt N. BHUJANGA RAO, Deputy Soticitor Generat of tndia / loPUCl

9. Two CD Copies N/P \4-

HIGH COURT DA'l'1D:0610212026 \,)' U I ./i * o

* Dr PAT

ORDER

WP.NI t.3448 of 2026 DISPOSING OF THE \I/RIT PETITION WI]'HOUT COSTS I cr.a "qoo ftp' I v- t 2[?! I