Supreme Court Directs Clubbing of SLP Challenging TGST Assessment with Related Writ Petition Alleging Malicious Proceedings

Background: The present Special Leave Petition (SLP) before the Supreme Court arises from a judgment of the Telangana High Court, which dismissed a writ petition challenging an order-in-original of assessment dated 02.07.2025 passed under Section 74 of the Telangana Goods and Service Tax Act, 2017 (TGST Act). The petitioner, A.S. Met Corp. Pvt. Ltd., had contended before the High Court that the assessment order was passed in violation of the principles of natural justice, specifically alleging that all relevant documents seized during inspection were not provided.

High Court’s Reasoning: The High Court, in its order, observed that the petitioner was at liberty to approach the appellate authority with the statutory pre-deposit as per Section 107(1) read with sub-section (4) of the TGST Act. The High Court clarified that its observations were limited to examining whether there was a denial of natural justice or failure to follow prescribed procedure, and that it had not entered into the merits of the case. The appellate authority was left free to consider all grounds raised in appeal in accordance with law.

Submissions Before the Supreme Court: Before the Supreme Court, the petitioner’s counsel highlighted that a related writ petition (Writ Petition (Crl.) No.19/2026) involving similar allegations of malicious proceedings by state tax authorities was pending before the Chief Justice of India. The petitioner alleged that the state tax authorities had initiated simultaneous proceedings against both the company and an individual, manufactured evidence, and shared confidential documents in violation of statutory provisions, all with the intent to pressure the petitioner in related insolvency proceedings.

On the other hand, counsel for the State of Telangana argued that the High Court had rightly declined to entertain the writ petition, having considered all relevant aspects. The State’s counsel drew attention to the High Court’s findings that the petitioner had been provided with scanned and hard copies of the relevant documents, was given multiple opportunities to respond, and had failed to specify which documents were missing or illegible. The adjudicating officer had concluded that the petitioner was not interested in submitting a reply despite numerous opportunities, and the assessment order was passed accordingly.

Supreme Court’s Order: After hearing both sides, the Supreme Court observed that the issues raised in the present SLP overlapped with those in the pending writ petition (Crl.) No.19/2026. The Court directed that the present petition be heard along with the related writ petition and ordered the Registry to place the matter before the Chief Justice of India for appropriate orders.

Conclusion: The Supreme Court has not adjudicated on the merits of the petitioner’s challenge to the TGST assessment order or the allegations of violation of natural justice. Instead, recognizing the interconnected nature of the disputes, the Court has directed that both matters be heard together to ensure comprehensive consideration of the issues. The outcome of the SLP and the related writ petition will be determined in further proceedings before the Chief Justice of India.