Judgment
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25787 OF 2026 (T-RES)
BETWEEN:
MRS. FARHEEN BANU, PROPRIETOR, AGED ABOUT 44 YEARS M/S STAR ELECTRICAL AND ENTERPRISES, HAVING ITS PLACE OF BUSINESS AT GROUND FLOOR, BUILDING NO. 114/4, AMC ROAD, NEAR GOVERNMENT SCHOOL, KAVALBAIRASANDRA, BENGALURU 560 032.
…PETITIONER (BY SRI. BHARATH KUMAR V., ADVOCATE) AND:
SUPERINTENDENT OF CENTRAL TAX, RANGE-B, NORTH DIVISION 5,
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
HAVING OFFICE AT NO. 59, 1ST FLOOR, HMT BHAVAN, BELLARY ROAD, BENGALURU 560 032
…RESPONDENT (BY SRI. ARAVIND V CHAVAN, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF SUSPENSION DATED 24.04.2026 BEARING REFERENCE NO.
ZA290426111188H, ISSUED BY THE RESPONDENT UNDER RULE 21A OF THE CENTRAL GOODS AND SERVICE TAX RULES, 2017 WHEREBY THE REGISTRATION BEARING NO. 29AQIPB9703H1ZR OBTAINED BY THE PETITIONER FOR CARRYING ON THE PROPRIETARY CONCERN AS STATED ABOVE IN FORM GST-REG-06 HAS BEEN SUSPENDED RETROSPECTIVELY W.E.F., 28.07.2017 (ANNEXURE A).
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
This is the second writ petition by the petitioner on the respondent’s decision to cancel its Central Goods and Services Tax Registration. The first writ petition is in W.P. No.6756/2026, and this petition is decided on 17.03.2026. This Court has quashed the order dated 30.01.2026 on cancellation of GST registration and restored the proceedings for reconsideration following the principles of natural justice.
2.
Mr.
Bharath Kumar V, the learned counsel for the petitioner, canvasses the following to support the petitioner’s request for interference with the order dated 24.04.2026 on suspension of the registration and the later order of cancellation of registration dated 19.05.2026.
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
[A] The petitioner was furnished with the list of alleged non-existing suppliers to assert that the petitioner cannot be permitted Input Tax Credit because these suppliers do not exist.
[B] The petitioner was allowed time till 24.04.2026 to furnish copies of the invoice and other documents to justify its case that the subject transactions are bona fide transactions.
[C] The petitioner, on 23.04.2026, sought an additional two weeks citing ill health as the reason, but on 24.04.2026, in a manner that shows pre-disposition towards suspension and cancellation, the registration is suspended and a Show Cause Notice is issued.
[C] The petitioner, on 05.05.2026 has furnished a detailed reply annexing tax
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
invoices/purchase invoices to show the genuineness of the transactions.
[D] Notwithstanding the same, the registration is cancelled by the order dated 19.05.2026 opining that the petitioner has not even produced the invoice copies.
3.
Mr. Bharath Kumar V submits that this Court must revoke the suspension of the registration and restore the proceedings for a fresh consideration with an opportunity to the petitioner to produce any further documents that the respondent may require because the cancellation is with retrospective effect from 01.08.2017 and because the decision to suspend the registration on 24.04.2026 is without due opportunity and in violation of the principles of natural justice despite this Court's observations in W.P.No.6756/2026,.
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
4.
Mr. Aravind V. Chavan, the learned Standing Counsel for the respondent, is heard. The learned Standing Counsel submits that this Court may consider the following.
Once the petitioner was furnished with a list of suppliers whose existence is doubted by the Authorities, it was the responsibility of the petitioner, especially after the earlier proceedings, to furnish not just some invoices but also documents such as, E-way Bills, Bank Statement, Goods Receipt Register, Goods Stock Register and other documents to support its case that the transactions with the suppliers are genuine and bona fide, However, the petitioner, who knew of the consequences, has not responded citing personal reasons, and has furnished an incomplete response to the Show Cause Notice.
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
This Court may consider extending an opportunity to the petitioner to file further documents to justify the bonafides of the transaction but may not revoke the suspension of the registration.
5.
The petitioner's grievance is with the very Show Cause Notice, and this Court is not persuaded to take exception with this Notice. The petitioner, upon being furnished with a list of suppliers whose existence was doubted by the respondent, should have made efforts to produce material to show bonafides rather than responding with a request for an adjournment on the last date. This Court is also persuaded to opine that the respondent has acted in haste in cancelling the registration by the impugned Order dated 19.05.2026. The petitioner, after seeking additional time, has filed a detailed response, and it cannot be gainsaid that along with the response, the petitioner has produced certain invoices as well.
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
6.
This Court's observation in W.P.No.6756/2026 is that the respondent must decide in a manner that would not violate the principles of natural justice. If the respondent was of the opinion that the invoices did not relate to the relevant transaction or that any further corroboration was required, in this Court's considered view, the respondent ought to put the petitioner on notice extending an opportunity to produce those documents. The failure in this regard offers a cause for interference.
7.
On the question of revocation of the registration, in view of this Court's first opinion on the petitioner's conduct after being served with the list of suppliers, this Court is of the view that there need not be a decision for revocation of suspension at this stage and the petitioner's grievance could be redressed if the petitioner, notwithstanding the
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
invoices furnished, is called upon to produce the E- way Bills, Bank Statements, Goods Receipt Register/Goods Stock Register relevant to the suppliers whose existence is doubted. Hence, the following.
ORDER A. The petition is allowed in-part.
B. The Order for Cancellation of Registration dated 19.05.2026 [Annexure - B] is quashed.
C. The respondent is called upon to communicate to the petitioner over e-mail, the details of the suppliers with regard to whom the petitioner must produce the invoice copies, E-way Bills, bank statement, Goods Receipt Register and Goods Stock Register.
D. The petitioner will be at liberty to produce these documents within such time as may be indicated by the respondent and the
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HC-KAR
CNR: KAHC010565052026 NC: 2026:KHC:45710 WP No. 25787 of 2026
respondent shall ensure that a detailed and a reasoned order, not just with an entry in the remarks column, is passed within two [2] weeks from the date of receipt of the documents furnished in terms of this Court's order.
Sd/- (B M SHYAM PRASAD) JUDGE
RB