The High Court · 2025

M/s. Neelkanth Traders, H.No.6-42-026/8, Sy. No. 201/2, Bowenpally, Secunderabad - 50001 1, Rep. by its Proprietor Mr. Jagadish Upadhyay aged 39 years ...PETITIONER AND

1. The State Tax Officer, Bowenpally-ll Circle, Begumpet Division,Hyderabad 2. The Deputy State Tax Officer, Bowenpally-ll Circle, Begumpet Division, Hyderabad.

3. The Assistant Commissioner (ST), BowenpallyJl Circle, Begumpet Division, Hyderabad.

4. The State of Telangana, Rep. by its Principal Secretary, Revenue (CT) Department, Telangana Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 ot lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue writ of mandamus the Respondents 1st to 3rd to revoke the of RC of the Petitioner dated 29.O5.2024 forthwith and also fnblock the electronic credit ledger blocked by the Respondents showing negative balance for the electronic credit ledger of the Petitioner, despite several representations made by the Petitioner to the Respondents as arbitrary, contrary to the Provisions of the CGST / SGST Acts'2017 and Rules there to and action and inaction of the Respondents is in violation of Principles of Natural Justice and Rule of law and consequently direct the Respondent to revoke the suspension of cancellation of RC and unblock the electronic credit ledger forthwith lA NO: 1 OF 202s Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may tie pleased to Direct the 1st Respondent to recall the suspension of GST Registration Certificate of the ,Petitioner so as to enable to file relevant retums from Apnl 20?-4 to March 2025 by the Petitioner by directing the 1st to 3rd Respondents to untrlock the electronic credit ledger of the Petitioner pending disposal of the above Writ Petition, as otheruvise, the Petitionerr will be put to severe loss and hardship Counsel for the Petitic,ner: SRI K.P AMARNATH REDDY REPIIESENTING FOR SRI. VENKATRAM REDDY MANTUR t Counsel for the Respondents: SRI SWAROOP OORTLLA Sper:ial Govt Pleader for State Tax The Court made the following: ORDER I THE HON'BLE THtr CHIEF JUSTICE SRI APARESH KT]MAR SINGH AND THE HON'BLE SRI JUSTICE G.M.MOIIIT'DDIN WRIT PETITION No. 14186 of 2025 ORDER: Heard Sri K.P. Amarnath Reddy, learned counsel I I appearing for Sri M. Venkatram Reddy, learned counsel for petitioner and Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appearing for respondents.

2. Petitioner has hled the instant Writ Petition seeking to direct the respondents for revocation of suspension of registration pursuant to the show cause notice for cancellation of registration dated 29.05.2024 and also for unblocking the electronic credit ledger showing negative balance therein despite several representations made by the petitioner to the respondent authorities. According to the petitioner, the electronic credit ledger relating to IGST is blocked since

29.04.2024 and the electronic credit ledger relating to SGST & CGST since 03.05.2024. a 2 HCJ (AKrS, J) & GMM, J W.P.No.l.r1aa, of2O25

3. A counter affrdavit has been filed by resoondent No.3 inter alia taking a stand that despite several notices issued upon the petitioner before blocking of electronic credit ledger and even after issuance of show cause notice for cancellation of registration, the petitioner has not cooperated by furnishing a proper repty. It is submifted that he has been seeking time orally to fumish required data before respondent No.3. But, till date, no material documents have been placed to refute the allegations levelled against him.

4. L,earned counsel for the petitioner submits that the blocking of the electronic credit ledger for more than one year is in the teetrh of sub-rule (iii) of Rule 86,{ of the Central Goods and Services Tax Rules, 2017 (for short 'the CGST Rules,20l7'). It is submitted that because of the suspension of registration, ttre petitioner is not in a position to unrlertake any business.

5. Learned counsel for the respondents does nc't have the instruction as to whether any proceedings under Sections 73 and 74 of the Central Goods and Services Tax Acr, 2017 (for 3 HCJ (AIirS, J) & C\lM, J w,P.No.l4la6 of 2025 short 'the CGST Act, Z0l7'), have been initiated against the petitioner or not. However, he submits that the petitioner has been found indulging in passing of illegally accumulated Input Tax Credit without compliance of the provisions of Section 16(2) of CGST Act, 2017. He submits that a decision on the L sus'pension of show cause notice for cancellation of registration would be taken in a time bound manner, if so directed.

6. In view of aforesaid facts and circumstances of the case and the submissions of the learned counsel for the parties, the instant Writ Petition is disposed of with the direction upon respondent No.3 to take a decision on the show cause notice for cancellation of registration dated 29.05.2024 within a period of three (3) weeks from today. Needless to say, if the \ electronic credit ledger of the petitioner is blocked for more than one year, the same should also be unblocked. The petitioner may furnish reply with the supporting documents within one week from today. If he fails to do so, it would be 4 HJ (AK'S, J, & OMlt, J w.P.No.1ar86 ot2025 (-\ open for respondent No.3 to take a decision in accordance with law. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed. SD/.M. NAGAMANI t ASSI:iTANT REGISTRAR / //TRUE COPY// I}ECTION OFFICER To,

1. 2

6. The State Tax Officer, Bowenpally{l Circle, Begumpet Division,Hyderabad The Deputy State Tax fficer, Bowenpally-ll Circle, Begumpet Division, Hyderabad. The Assistant Commissioner (ST), Bowenpally-ll Circle, Begumpet Division, Hyderabad. The Principal Ser:retary, Revenue (CT) Department, Telangana Secretariat, Hyderabad. One CC to SRl. VENIGTRAM REDDY MANTUR Advocate IOPUC] Two CCs to SPL. GP for STATE TAX, High Court for the State of Telangana at Hyderabad. [OUT]

7. KKS LS Two CD Copies CPi I \ HIGH COURT DATED:2 510812t025 :-:-:-:\- , ,i- S fA,,( o -) t oMNI\J t z 01 t t ilspar CH ORDER WP.No.14186 of 2025 DISPOSING THE WRIT PETITION WITHOUT COSTS (il- s,t-/ \b L( @