S.M. Traders vs. Deputy State Tax Officer

WP/40471/2025HC TelanganaGSTCNR HBHC01081706202519 February 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN6 pages

For Petitioner: SRI SINGAIII SRINIVASA RAOFor Respondent: SRt K. SAI AKARSH, AGp REPRESENTING, SRI SWAROOP OORILLA, SPECIAL GOVERNMENT PLEADER FOR STATE TAX

AI SummaryRemanded

Facts

The petitioner, S.M. Traders, represented by its Proprietor Shaik Saddam, filed a writ petition challenging the cancellation of its GST registration by the Deputy State Tax Officer on February 19, 2024, for alleged violation of Section 16 of the Goods and Services Tax Act, 2017. Subsequently, an application for condonation of delay in filing a revocation application for the cancellation was rejected by the Joint Commissioner on May 9, 2025, on the grounds that the reasons provided were not satisfactory. The petitioner argued that the delay was due to financial stringency. The respondents sought time to obtain instructions.

Held

The Court held that the order dated May 9, 2025, rejecting the application for condonation of delay in filing the revocation of GST registration cancellation, suffered from a lack of reasons and proper application of mind. The order was described as 'cryptic' and did not refer to the circumstances sought to be explained by the petitioner. Consequently, the Court set aside the impugned order. The matter was remanded to the competent authority to pass a fresh order in accordance with the law. The writ petition was disposed of accordingly, with no order as to costs.

Key Issues

1. Whether the order rejecting the application for condonation of delay in filing the revocation of GST registration cancellation was passed without proper application of mind and sufficient reasons, thereby violating principles of natural justice and the provisions of the Goods and Services Tax Act, 2017? Petitioner's contention: The petitioner argued that the delay in filing the revocation application was due to financial stringency. They contended that the impugned order rejecting the condonation of delay was cryptic, lacked reasons, and was passed without considering the explanation provided, thus violating principles of natural justice and being arbitrary and contrary to law. Revenue's contention: The learned Assistant Government Pleader for the respondents sought further time to obtain instructions. No specific arguments were recorded for the revenue regarding the merits of the delay condonation application.

Sections Cited

Section 16

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

I s4881 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Specia! Original Jurisdiction) THURSDAY, THE NINETEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX IIIII=FI{IIIi THE HON'BLE THE CHIEF JUSTICE SRIAPARESH KUMAR SINGH AND THE HON'BLE SRI JUSTICE G.M. MOHIUDDIN 1o/F 2025 S.M. Traders, 4-3-94, Khaja Nagar, Attapur, Hyderabad-500064, Represented by its Proprietor, Shaik Saddam, S/o. Shaik Nadeem. AND 1. Deputy State Tax ffioer, Rajendranagar l, Hyderabad. 2. The Joint Commissioner, Rajendranagar-1, Saroomagar Division, Gaganvihar, Nampally, Hyderabad. 3. The Commissioner of State Taxes, State of Telangana, Commercial Taxes Complex, M.J. Road, Opposite Gandhi Bhavan, Nampally, Hyderabad - 500 001. Department, Telangana its Principal Secretary, Revenue (CT-ll) Hyderabad ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an order or direction more particularly one in the nature of Writ of Mandamus or any other appropriate writ or order or direction declaring order for cancellation of Registration in Referenc,e No. 2A360224053896A, Dt.19.02.2024 by the 1st respondent and the subsequent order of rejection of application for the condonation of delay in filing revocation application of cancellation of registration in Ref. No. 2A360525027544J, dated 09.05.2025 passed by the 2nd respondent R 4. The State of under the Goocls and Services Tax Act, 2017, as illegal, arbitrary, contrary to law, violation of principres of naturar justice, contrary to the provisions of the Act and violative of Articles 14, 3ooA and 19(1Xg) of the constitution of lndia, set aside the same and cons,:quenfly direct the respondents to revoke the order of cancellation of GST registration Dt. 19.02.2024 in the interests of justice. lA NO: 1 OF 2o25 Petition under section isl 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 respondent:s to restore the registration after suspending the order of cancellation of registration D1.1g.02.2024 passed by the 1sr respondent, pending disposal of the writ petition. Counsel for the Petitioner: SRI SINGAIII SRINIVASA RAO Counsel for the Respondents: SRt K. SAI AKARSH, AGp REPRESENTING SRI SWAROOP OORILLA, SPECIAL GOVERNMENT PLEADER FOR STATE TAX The Court made the following: OROER IN TIIE HIGH COT'RT FOR THE STATE OF TELANGANA AT ITYDERABAI) \ (. AND THE HON'BLE SRI .IUSTICE G.M.MOIIIUDDIN DATED: 19.02.?fr?6 Between: S.M. Traders, 4-3-94, Khaja Nagar, Attapur, Hyderabad-s00 064, Represented by its Proprietor Shaik Saddam, S/o. Shaik Nadeem / Petitioner AND Deputy State Tax Officer, Rajendranagar I, Hyderabad & 3 others Respondents

ORDER: Heard Mr. Singam Srinivasa Rao, learned counsel appearing for the petitioner through video conference and Mr. K.Sai Akarsh, learned Assistant Government Pleader representing h/k. $waroop Oorilla, learned Special Government Pleader for State Tax appearing for the respondents.

The application for condonation of delay in filing an application for revocation of order for cancellation of registration was rejected on 09.05.2025 on the grounds that th: reasons are not satisfactory. The GST registration of the petitioner was cancelled for violation of Section 16 of the Goods and Services ( ( Tax Act, 2017. On the previous date, the matter was adjourned for the ) petitioner tc, file affidavit containing the delay condonation application that has been brough.t on record by way of a memo. 3. t arned counsel for the petitioner submits that delay was on account of financial str:.ngency.

Lramed Assistant Govemment pleader for the respondents seeks further time to obtain instructions. 5' Upon hearing leamed counsel for the parties and upon going through the ' impugned rlrder dated 09.05.2025, it appears that the application for condonation has been rejected by a cryptic order without rcferring to any circumstances sought to be explained on behalf of the petitioner. The impugned order, therefore, suffers from lack of reasons and proper application of mind. It is, accordingly, set aside. The matter is remanded to the competent authority for passing a fresh order, in accordance with law.

The \['rit Petition is disposed of accordingly. However, there shall be no order as to c(,sts. Miscellaneous applicatio_ns p9ndgg., $ any, Lhall stand closed. '.AHMED ABDULLAH KHAN srs SECTION OFFICER E To 1. The Deputy State Tax Officer, Rajendranagar l,

The Joint Commissioner, Rajendranagar-1 , Saroomagar Division, Gaganvih;rr, Nampally. Hyderabad.

The Commissioner of State _Taxes, State of Telangana, Commercial Taxes Complex, M.J. Road, Opposite Gandhi Bhavan, Nampally, Hyderabad - 500 oo1

The Principal Secretary, Revenue (CT-ll) Department, State of Telangana, Telangana Secretariat, Hyderabad

One CC to SRI SINGAM SRINIVASA RAO, Advocate IOPUCI

Two CCs to SRI SWAROOP OORILIA, Special Government Pleader for State Tax, High Court for the State of Telangana at Hyderabad. [OUT]

Two CD Copies o \ MP BS \ \

ft .a..::- 2t]26 R A l'1 3 2 o \ * \ HIGH DATED i1910212026 THE S * RDER WP.No.40471 of 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS f ( )

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.