M/S. Neem Tree Hospitality Services Private Limited vs. The State Of Telangana

WP/5654/2026HC TelanganaGSTCNR HBHC01007697202624 February 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN6 pages

AI SummaryRemanded

Facts

The petitioner, M/s. Shree Hospitality Services Private Limited, had its Goods and Services Tax (GST) registration bearing No. 36AAICN5495P1Z1 cancelled on September 13, 2024, by the Deputy State Tax Officer for non-filing of returns for six consecutive months. The petitioner filed an appeal against this cancellation, which was dismissed as time-barred. Subsequently, the petitioner filed an application for revocation of the cancellation with the Deputy State Tax Officer, which was also rejected. The petitioner then filed a writ petition before the High Court seeking to quash the rejection order and the underlying cancellation order, and to restore its GST registration.

Held

The Court noted that the GST registration was cancelled due to non-filing of returns for six consecutive months. Considering the circumstances, the Court directed that if the petitioner approaches the competent authority within one week from the date of the order with a physical application for revocation of the GST registration cancellation, the competent authority shall entertain it and decide the matter in accordance with the law within three weeks thereafter. The writ petition was disposed of with this direction. The Court did not explicitly decide on the legality of the rejection or the arbitrary nature of the process, but provided a procedural path forward.

Key Issues

1. Whether the rejection of the petitioner's application for revocation of GST registration cancellation was arbitrary and illegal, violating principles of natural justice and statutory provisions, particularly when the petitioner claims no outstanding dues and attributes non-filing of returns to lack of knowledge and not intentional delay? Petitioner's arguments: The petitioner contended that there were no outstanding GST dues. They claimed non-filing of returns was due to a lack of knowledge and not intentional. The rejection of their revocation application by the third respondent was mechanical and arbitrary. Furthermore, their appeal against the cancellation was dismissed solely on grounds of limitation. They sought directions for the restoration of their GST registration. Revenue's arguments: The learned Special Government Pleader for State Tax stated they had no instructions regarding the petitioner's assertion of no outstanding dues. However, they confirmed that the cancellation was based on the non-filing of returns for six consecutive months.

Sections Cited

Section 151 CPC

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

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The Court made the following: ORDER

Datedz 24'02'2026 ffilli?; rree Hospitalitv Services Private Limited' Rep., by its Director/Authorized Signatory ftnr. g*tu Krishna Babu' HYderabad' AND And The State of Telangana' Rep.,bY its PrinciPal SecretarY' Reuenue (Commercial Taxes) Department' Secretariat, Hyderabad and 2 others' Petitioner .ResPondents ORDER: Nk.B.SudarshanaSetty,learnedcounselforthepetitioner. Mr. K. Sai Akarsh, learned Assistant Government Pleader represents Mr. Swaroop Oorilla, learned Special Government Pleader appears for State Tax.

The Goods and Services Tax (GST) registration certificate of the petitioner bearing No.36AAICN5495PlZl was cancelled vide order passed in Form GSr REG-te dated 13.09.2024 for non-filing 0f retauls for A I n

2 consecrtive period of six months. The petitioner preferred a time_barred appear egainst the order of canceration of registratior ;",,, ::: the instant writ petidon for revocation of cancellation of GST registration certificatr:. 3' Le*ned counser for the petitioner submits that there are no Goods and servi<:es Tax dues Ieft to be paid by the petitioner. Ir is submitred that non-firing of returns was for the reason that the pedtioner has no knowredge about it an'c rhere was no intentionar delay. Though the petitioner has fired an application for revocation of cancellation of GST registration certificate, the same v'as rejected by respondent No.3 in mechanicar and arbitrary manner. Evr:n the appear f,ed by the petitioner was also dismissed on the ground of rimitation. Therefore, the petitioner prays that the respondents may be directed ro revoke its GST registration.

Learnr:d Speciar Government pleader for state Tax submits that he does not hav': in5lluction on the assertion that no outstanding dues remain against the petitioner. He, however, submits that the apparent reason for CanCgllatiOn rf GST registration certificate was on account of non-filing or re$rns for tlre consecutive period of six months'

'7 / 3

Having regard to the aforesaid facts and circumstances and also taking note of the fact that the GST registration certificate of the petitioner was cancelled on account of non-filing of returns for the consecutive period of six months, if the petitioner approaches the competent authority within a period of one week from today for submission of application for revocation of cancellation of GST registration certificate, in physical form, the competent authority would entertain it and take a decision thereupon in accordance with law within a period of three weeks thereafter.

The instant writ petition is accordingly disposed of. There shall be no order as to costs. Miscellaneous applications pending, if any, shall stand closed. .PONNA KRISHNA REGISTRAR /II SECTION OFFICER The Principal Secretary Telangana, Secretariatl , Revenue (Commerciat Hyderabad.' ) Department, State of 2. If,g Appe/t{e Joint Comrnissioner, (State Divisiori-#'Fi;d c.t. EJ#prcr, Nampaity, nvoJr*rlFAc), Secunderabad 3' #e,?r"i#y state Tax officer, saroor Nagar-3 circte, saroor Nagar Division,

ONC CC tO SRI B. SUDARSHANA SErrY, AdVOCAtE TOPUC] 5' Two ccs to sri swaroop ooritla, special Governmen_t pleader for state Tax, l_,nn court for the sGt" EriEiing"-il""il Hvi""'rlo"o. tour]

Two CD Copies MP \"U To 1

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