HC Rules GST Authorities Cannot Decide Civil Disputes on Will Validity

Case Details: Ved Prakash Agarwal vs. State of Telangana - [2025] 178 taxmann.com 331 (Telangana)

Judiciary and Counsel Details

• Aparesh Kumar Singh, CJ.
• G.M. Mohiuddin, J.
• R A Achuthanand, Adv. for the Petitioner

Facts of the Case

The petitioners, sons of the deceased proprietor of a spices and masala manufacturing business, challenged the GST registration obtained by the grandson of the deceased, who claimed entitlement under a Will allegedly executed in his favor. The grandson had filed a civil suit seeking a permanent injunction restraining the sons from interfering with the business, but the Civil Court refused to grant injunction, holding that the Will appeared to be forged. Subsequently, the sons filed a petition before the GST authorities seeking cancellation of the GST registration obtained by the grandson on the ground that it was obtained by playing fraud and based on forged documents. The GST authorities refused the petition. Both parties then filed writ petitions before the High Court seeking cancellation of each other’s GST registration. The matter was accordingly placed before the High Court of Telangana.

High Court Held

The Telangana High Court held that the validity of the Will was sub-judice and that civil disputes or conflicting claims regarding genuineness and validity of instruments like Will, succession, and similar matters should not be adjudicated by GST authorities. The Court observed that the appropriate forum for determination of rights in such matters lies with the Civil Court. It was noted that the sons had the right to claim their share in the property, including the business of the deceased, in the pending civil suit. Consequently, the Court directed that GST registration of both parties should be verified only after determination of rights of the parties in the civil suit, clarifying that GST authorities cannot adjudicate civil disputes or claims over succession and validity of documents under Section 29 of the CGST Act.