G L Thippeswamy Contractor vs. The Commissioner Of Commercial Taxes

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WP/13959/2026HC KarnatakaGSTCNR KAHC01030323202602 June 2026Bench: B M SHYAM PRASAD5 pages
For Petitioner: SRI. RENUKAPRASAD C M., ADVOCATEFor Respondent: SRI. K. HEMA KUMAR, AGA
AI SummaryPartly Allowed

Facts

The petitioner's GST registration was cancelled due to continuous failure to file returns for six months. The subsequent appeal filed under Section 107 of the KGST and CGST Act, 2017, was dismissed on the grounds of limitation.

Held

The High Court partly allowed the petition, quashing both the cancellation order and the appeal dismissal order. It directed the restoration of the petitioner's GST registration, conditional on the petitioner uploading all pending returns and offering taxes, interest, and penalty within two weeks of the portal enabling.

Key Issues

The primary issues were the validity of GST registration cancellation for non-filing of returns and the dismissal of the appeal on limitation, especially when the assessee expressed willingness to comply with all statutory obligations.

Sections Cited

Section 107

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2026:KHC:25581 WP No. 13959 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 13959 OF 2026 (T-RES) BETWEEN: G L THIPPESWAMY CONTRACTOR NO 105, GUDDADAHALLI VILLAGE, BHYRAPURA POST, MOLAKALMURU TALUK, CHITRADURGA DISTRICT - 577 535, KARNATAKA REPRESENTED BY ITS PROPRIETOR SRI GUDDADAHALLI LAXMANA THIPPESWAMY. S/O GT LAKSHMANA, OCCUPATION BUSINESSMEN, AGED ABOUT 51 YEARS, R/O NO. 105, GUDDADAHALLI VILLAGE, BHYRAPURA POST, MOLAKALMURU TALUK, CHITRADURGA DISTRICT - 577 535, KARNATAKA …PETITIONER (BY SRI. RENUKAPRASAD C M.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:25581 WP No. 13959 of 2026 AND: 1. THE COMMISSIONER OF COMMERCIAL TAXES VANIJYA TERIGE KARYALAYA, GANDINAGAR, KALIDASA ROAD BANGALORE-560 009 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES,(APPEALS), DAVANGERE DIVISION, VANIJYA TERIGE BHAVAN, DEVARAJ URS LAYOUT, DAVANGERE-577 005 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-485, NRR ARCHED, BELLARY ROAD, OPP CHALLAKERAMMA TEMPLE, CHELLAKERE-577 522. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TOQUASH THE IMPUGNED ORDER PASSED BY THE R2 UNDER SECTION 107 OF THE KGST AND CGST ACT 2017 BEARING APPEAL NO. KGST/AP- 666/2024-25 DATED 09.06.2025 AT ANNX-D; QUASH THE ORDER PASSED BY THE R3 FOR CANCELLATION OF GST REGISTRATION VIDE

ORDER REF. NO. ZA291123072555H DATED 17.11.2023 AT ANNX-C. HC-KAR NC: 2026:KHC:25581 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER

The petitioner's grievance is with the decision to cancel GST registration and the confirmation of such decision with the dismissal of the appeal filed under Section 107 of the Karnataka Goods and Services Tax Act, 2017. The petitioner is issued with a Show Cause Notice because of the failure to file returns continuously for a period of six months and the appeal against such decision is dismissed on the ground of limitation opining that the appeal had to be filed within three months from the date of the application.

Mr. Renukaprasad C M, the learned counsel for the petitioner, and Mr. K. Hema Kumar, the learned Additional Government Advocate, who accepts notice for the respondents, are heard in the light of these HC-KAR NC: 2026:KHC:25581 circumstances and the petitioner's case that monthly returns have been filed until the date of order of cancellation of registration and that the petitioner is willing to file all Returns and offer taxes, interest and penalty once the Portal enables the petitioner.

It emerges that the Court's consistent view, when the decision to cancel registration is an ex-parte decision and the assessee is willing to offer all the tax with interest, is to allow restoration of registration subject to the assessee filing upto date Returns and offering tax, interest and penalty within a reasonable time. Hence the following. ORDER [A] The petition is allowed-in-part quashing the Order dated 17.11.2023 [Annexure - C] and the Order in appeal dated 09.06.2025 [Annexure - D] subject to the condition that the petitioner, within two [2] weeks from the date the Portal enables, shall HC-KAR NC: 2026:KHC:25581 upload all the returns and offer taxes with interest and penalty. [B] It is needless to observe that if there is any default, it would be open to the Authorities to act in accordance with law. (B M SHYAM PRASAD) JUDGE RB

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.