Services Private Limited v. Statc of Jhatkhandl, u'hich lai's down that the shou, cause notice should fulfill

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SIXTEENTH DAY OF SEPTEIVIBER TWO THOUSAND AND TWENTY FIVE PRESENT [ 3488 ] THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M, MOHIUDDIN WRIT PETITION NO: 27673 OF 2025 Between: IVi/s. Itlanikanta Enterprises, Ground Floor, 2-1711 , Shutter 1 , lstakameswari Colony, Hyderabad, Rangareddy, Telangana - 501505, Rep by its Proprietor Sri Bandela Narsaiah ...pETrrroNER AND 1 The Deputy State Tax Officer, Vanasthalipuram-ll, Hyderabad. 2. The Assistant Commissioner (ST), Vanasthalipuram-2 Circle, Saroornagar Divrsion, Hyderabad.

3. The Commissioner of State Tax, Government of Telangana, Commercial Tax

4. The State of Telangana, Rep. by its Secretary (Revenue) CT Dept., Building, Nampally, Hyderabad. secretariat Building' Hyderabad ...RES'.NDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewrth, the High Court may be pleased to issue a Wrrt of lvlandamus or any other writ order or direction declaring the action of the 1st respondent cancelling the registration of the petitioner for no fault of it and refusing to revoke the same is illegal, arbitrary, high-handed without authority of law and jurisdiction and in violation of principles of natural justice and in violation of Section 29, Section 30 of the TGST/SGST Act,2017 read with Rule 25 of TGST/SGST Rules, 2017 and consequently set aside the impugned proceedings of the 1st respondent i.e-, show cause notice for cancellation of registration in Form GST REG-17 dated '17-03-2025, the order of cancellation of registration in Form GST REG- 19 dated 28-03-2025 and the order of rejection of application for revocation of cancellation in Form GST REG-05 dated 1 1-06-2025 and award exemplary costs to the petitioner. lA NO: 1 OF 2025 + Petition under Section 151 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the 1st respondont to forthwith restore the registration of the petitioner pending drsposal of the !\'rit Petition. Counsel for the Petitioner: SRt KARTHTK RAMANA FOR SRt V.STDDHARTH REDDY Counsel for the Respondents: SRI K.SAI AKARSH FOR SRt SWAROOP OORILLA, Special Govt Pleader for State Tax * The Court made the following: ORDER [{l ;s .1 & s. r+ t 4 r* -ir f :# f.s{W7 . '.: ' '. :. .,.f THE HON'BLE THE CHIEF IUSTICE SRI APARESH KUMAR SINGH AND .THE HON'BLE SRI IUSTICE G.M.MO IUDDIN Writ Petitio n l'Jo.27 67 3 of 2025 H Ordcr Fiearcl ir,Ir. Iiarthik Ramana, lcarncd counsel reprcscntirlg N,Ir. \t.Siddharth Reddy, icarncd counsel for the pctitioncr and Mr. I{.Sai \karsh, learned counsel representing NIr. St aroop Oorilla, Iearn,-'d Spccial (lor'cnrment Pleader for State Tax, lor the rcsponclcnts

2. The rmpug;ncd shor.v cause noLice for cancelladon of rcgistration rlated 17.03.2025, lacks the ingredients of proper shorv cause notrce, as requircd to bc issued in Form GST REG 17 under Ruic 22(1) o[ the'felangana State Goods and Scntccs Tax Rr-rles, 2()17 (for short 'the Rules'), as per Section 29 of the Telangana Stzrtc (ioods and Services 'Iax Act, 2017 (for short 'thc Act'), as rt cloes not contain any datc or time for appearancc of the petitionet to explain its defence as against the alleged grounds proposecl for canceliation of its GST registration. The shou' cause n()tice annexed a panchanama report on premises of 2 the pcritionei conductcd on 15.(li.l02-1. l'l-rc shorv causc notjcc \\r?1s follot,ccl ll' cancellation of t-egis tt-attou

28.03.21t25 on rhc ground thur thc ;lcri.tioncr tlocs rlot conclrrct env busir-ress frorn cleclarccl placc of bustncss. 'I hc aPP]iciltlo1l oI thc petitioner for r'clocation of cancclLation of rcgistr:Lrion in Form GSl' REG 21 clatccl 27.C:202a.lLnclcr Rtrle 23(1) of rhc Rules, u'as fblkxvcd bl shorv causc noticc for t-clcctiotr .lf application For revocauon of canccllation oi rcglstrxtion datcd 30.05.2025, bl rhe Dcputv Slater 't'ax Otllcel . '['herrraftet, tl-rc application has been rcjectc<l bv the ordet contatnecl in Form ( lST IiEC-05 datccl 11.06.1102.-i under Rule 9(1; of rhe I{ulcs. i'hc pctitioncr has assailerd the shorv cause noticc ior cancellation oI registr-alion dared 17.03.2r.)2-1, the order of cancellation , i reqistration cl:rtcd 28.0.1.11025 and the or-dcr oirc:icction of its rLpplication for rc\-ocatiolr oi canccllzrtion of rcgrsuation datccl 1l 0(t.2025

3. Learncd counscl for thc petitioller submtts that the order oi cancellation rcacl with show cause notice for <:ancellation of rcgistration in F'otm CIST ltll(l i7 is vitiated as it has failecl to w 3 follorv the proccdute ptescribed undcr Rule 22 (1) of the Rules, rvhich has.caused prcjudicc to the pctitioncr. Respondents seem to be in haste to cancel the registration. Moreovcr, the application for rcvocatit.rn of cancellation of registradon has also bccn dcalt rvith in a hastv manncr as immediately after the pctitioncr's applicatron dated 27.05.2025, show causc notice for rcjcction o[ sucli applicatron has been issued in Form GS'f IIEG-23 on 30.05.2025. Pctitioner has been therebv adverseh, aflcctcd For non-compliancc of principlcs of natural justicc.

4. Learned counscl for Stzrtc Tax does not dispute that the shor.r. causc noticc ilocs nor contain anv date or timc on which thc pctitioner was supposcd to appcar and defend itself.

5. We har.e considered the subrnissions of the learned counsel for tl-rc partics

6. The proccedings initiatcd for canccllation of registratjon of , the pedrioner and the conscquential order of cancellation of regisrration suffer from serious violation of principles of natural 4 dj.i." justice. Refcr:nce is madc to thc impusned notice in lrorm GST I+.(;-17, u'hir:h is cxlractcd hereundcr: Rcfctencc N, r.: ZA^360325044781E D atc 1'7 / 03 / 2025 I.) llcgtstrariorr \i,.rtnlrcr (iS'I Lv,/L I\) l6llLIil)N( )5 )7 \ t I Z-S [iar clcla Nlr.slLLah 2 11,/1, ShLrrrcr l, (lroLrtrtl I'loor, lofiLk;uncst et.r (.olonr', I Ivdcmbacl. Ii l rpa recl,l I(l.lrtr',1r1 r. 'ol5llr tihorl Cttrsc Notice fiir (,arlccllation of Rcgisuttt,rrL You nte lrer-cl>r dircctccl ro iirnrislt r rcpli'to thc lottc'' rrirhirl scrcn u orlitrtg dai s lronr rhc date oi sen icc oi thrs rtoticc rcd Lo r c11f cfirrc thc unclrrst rrccl rr.rthorin ort \'-ou 'lrc l- ct e[r r nclehncd r L nclc t-urecl a[ r l[ -vou tliL to ftuntsh a replv s,ithirr thc stipuletcd datc or i].ill (r lPPear ti)r Irclsolai Ircalrlll ort rhc appoirltccl clatc rncl tirne, lhc crsc sill rc tlt:ciclccl cr prrlrc on thc 1,esis c,f available r<rr:()t-ds and ort uelits [)leasc note thnr vour rc.qislrarron sttrtlds suspenciccl siri c[[ict irour tr.0i.2025. Iirncll'. r.efcr rhc supportivc doctttncrtL erllichcd ii)r clsc sPC' trc rlcteils T'lacc:: Te Iang;ttt:r l)atc: 17.01 2()2 j Ncnagath Ner,csirrvar l(ao I)eputr Sta tc Iex ()tlrccr, Ylnrrs thelipLrl rnr I I l. Jn thc al)sencc of definite clatc aucl tirne, he Petiti()ner coulc1 not bc: ,:1pcs1ccl to defend hrmscl[ Propcrh- bcFole thc orcler ()f can(:elladorr of reglstrauon was Passccl. 'l'l-rc impugned flot1ce therefore lacks the ingredlents fbr a propcr shorv cause noticc. Rcference is madc to thc dccision rn M/s. Nkas p ) 5 Services Private Limited v. Statc of Jhatkhandl, u'hich lai's down that the shou, cause notice should fulfill the ingredients as required under the GST Act and the Rules made thereunder' Therefore, the impugned show cause notice for canceilation of registration dated tl .A3.2025, the order of cancellation of registration dated 28.03.2025 and the order of rejection of application for revocation of cancellation of registration dated 11.06.2025 are set aside.

8. However, liberty is resen'ed with the respondents to initiate fresh proceedings for cancellation of registration of the petitioner, if such grounds exist in accordance with law. 9 Accordingly, the irutant \Vrit Petition is allowed. As a sequel, miscellaneotu petitions, pending if any, stand closed. There shall be no order as to costs. 2022 (02!. GSTPanacea 487 HC Jharkhand SD/-A.H.S. GOWRI SHANKAR ASSI TANT REGISTRAR t6 I & //TRUE COPY// S TION OFFICER To The Deputy State Tax Officer, Vanasthalipuram-ll, Hyd The Assistant Commtssioner (ST), Vanasthalipuram-2 Ci Division, Hyderabad. The Commissioner of State Tax, Government of Telangana, Commercial Tax Building, Nampally, Hyderabad. The Seiretary (R6veriue) CT Dept., Secretariat Building, Hyderabad, State of Telangana. one Cc to sRl V.SIDDHARTH REDDY, Advocate [oPUC] One CC to SRI K,SAI AKARSH, Special Govt Pleader for State Tax [OPUC] abad. rcle, Saroornagar 1 2 3 4 q i+ a. $ { 4 * *- HIGH COURT DATED:16t0912025 ORDER WP.No.27673 of 2025 ALLOWING THE WRIT PETITION WITHOUT COSTS 7 3 tltT 2025 \-\ -- r.rctiEr') * q V' it)