The Telangana High Court quashed orders passed under Section 73(5) for 2024-25, rejecting the State’s plea that the wrong provision was a technical error and the orders could be read under Section 74A.
The Telangana High Court has held that orders for financial year 2024-25 cannot be passed under Section 73 of the GST Act, which as applicable to the proceedings does not extend to that year. A Division Bench of the Acting Chief Justice P. Sam Koshy, who wrote the order, and Justice Suddala Chalapathi Rao allowed three writ petitions [C.M. Hydro Systems Private Limited v. Assistant Commissioner of State Tax & Ors., 2026-juristway.com-3226-HC(Telangana)-GST].
The petitioner challenged orders dated 26 Aug 2025 and 9 Sep 2025 passed by the Assistant Commissioner of State Tax under Section 73(5). Its counsel argued that Section 73(5) applies only to financial years up to 2023-24, and that any proceedings for 2024-25 ought to have been initiated under Section 74A.
The Special Government Pleader for State Tax fairly conceded that the orders ought to have been issued under Section 74A. He submitted, however, that the reference to Section 73(5) was a technical error and asked the Court to construe the orders as having been issued under Section 74A.
The Court declined to do so. Since the orders had in fact been issued under Section 73(5) and the year involved was 2024-25, it held that they could not have been issued under that provision and set them aside.
The respondents were left free to initiate appropriate proceedings against the petitioner, if so advised, strictly in accordance with law. Mr. V. Sai Amit appeared for the petitioner and Mr. Swaroop Oorilla, Special Government Pleader for State Tax, for the respondents. The writ petitions were allowed without costs, and pending miscellaneous applications were closed.
2026-juristway.com-3226-HC(Telangana)-GST
