M/S. Mr Trading Co vs. The Deputy State Tax Officer

WP/4256/2026HC TelanganaGSTCNR HBHC01007900202612 February 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN6 pages

For Petitioner: SRI V. VEERESHAMFor Respondent: sRl K sAl AKARSH, AGp FoR srATE TAx

AI SummaryRemanded

Facts

The petitioner, M/s. MR Trading Co., approached the High Court of Telangana seeking to set aside the cancellation of its GST registration. The cancellation was initiated by a notice in Form GST REG-17 dated 31.01.2023 and finalized by an order in Form GST REG-19 dated 23.12.2023, issued by the Deputy State Tax Officer. The stated reason for cancellation was the non-filing of GST returns for six consecutive months. The petitioner explained that business losses due to import duty classification issues and lack of new opportunities prevented them from filing returns. Having missed the time limit for revocation applications or appeals, they filed the present writ petition.

Held

The Court acknowledged the circumstances presented by the petitioner, including the reason for non-filing of returns (business losses and lack of opportunities) and the lapse of the statutory time limit for revocation applications. The Court did not delve into the legality or validity of the cancellation order itself. Instead, it disposed of the writ petition by directing the petitioner to approach the competent authority within one week from the date of the order for submission of an application for revocation of cancellation, in physical form. The competent authority was directed to entertain the application and decide it in accordance with law within three weeks thereafter. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the cancellation of GST registration for non-filing of returns for six consecutive months, without considering the petitioner's explanation for the default, is arbitrary and violative of natural justice and constitutional provisions (Articles 14, 19(1)(g), 21, and 265)? Petitioner's arguments: The petitioner contended that the cancellation was void, arbitrary, illegal, without authority of law, and violative of the principles of natural justice and constitutional rights. They argued that the inability to file returns was due to genuine business difficulties, and the cancellation, without proper consideration of these circumstances, caused irreparable loss and hardship. They sought restoration of their GST registration. Respondents' arguments: The learned Special Government Pleader for State Tax submitted that the cancellation was based on the apparent reason of non-filing of returns for six consecutive months.

Sections Cited

Form GST REG-17, Form GST REG-19

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

: [ 3488 I IN THE HIGH COURTfOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE T'//ELFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUS.TICE SRI APARESH KUMAR SINGH THE HONOURABLE SNI}UDSTICE G.M. MOHTUDDIN Between: F M/s. MR Trading Co_, Having address at 1_84t6 #ti*"l,nsii?-500005Representedorii.-s jfl :f iyirxtr'tit"1t*11:ti .r, ia ii-F a,r,l? rtifl 33 : iift g :8,.?:'":L: l ;5 lti *i u ir t'o #, ffi i li i, p,r "n *, AND ...PETtfloNER 1*"r',""ff ',ilff l'^I3nff siii,Eif "f[,]s?E[,X,fi ::,"df,e'ff i[?fl:ig:E.n, 2' state of relangana, Represented blits.Principal secretary to Government, f:,:?!:?roepartmenttcommJrciri?1,.1,ffi '[T;,.dac,i*6r"i]ivi"rabad,' ...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 a writ, order, or direction more particularly one in the nature of a writ of Mandamus, a) Declaring the notice issued proposing cancellation of the GST registration vide Form REG 17 vide ref. no. 2A3601232102148 dated 31'01 '2023 and the order issued for cancellation of GST registration vide Ref No. 243612230504031 in Form GST REG-19 dated 23.12.2023 by 1st respondent, as being void, arbitrary, illegal, without authority of law and without jurisdiction, violative of the Principles of Natural Justice apart from being violative of Articles 14' 19(1)(il,21 and 265 of the Constitution of lndia, and to consequenly set aside the same by restoring the GST registration of the petitioner l"l lA NO: 1 OF i1026 Petitiorr under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pteased to suspend the operation of order cancelling the GST registration vide Ref. No. 2A36122305(t4031 in Form GST REG-19 dated 23.12.2023 in the interest of Justice and equity as otherwise, the Petitioner will be put to irreparable loss and hardship Counsel for the Petitioner: SRI V. VEERESHAM counsel for the Respondents: sRl K sAl AKARSH, AGp FoR srATE TAx

The Court merde the following: ORDER .i1:.'

IN THE HIGH COURT FOR THE STATE OF TEI.A.NGANA AT HYDERABAD The Hon'ble The ChiefJustice Sri Aparesh Kumar Singh and The Hon'ble Sri Justice G.M.Mohiuddin Writ Petition No.4256 of 2026 Dated;12.02.2026 Between: M/s. MR Trading Co Mamidipalli, Ranga Reddy District, Rep. by its Sole Proprietor Mr. Mohd.Jishan ...Petitioner and The Deputy State Tax Officer, Saroornagar -[[ Circle, Saroornagar Division, Hyderabad and another. .Respondents Order: Heard Mr. V.Veeresham, learned counsel appearing for the petitioner and Mr. I(Sai Akarsh, learned Assistant Government Pleader for State Tax appearing for the respondents.

The Goods and Services Tax (GS! registration of the peritioner bearing GSTIN No.36CFGPM7642H1z6 was cancelled tide wryugned order passed in Form GST REG-19 dated 23.12.2023 for non-filing of returns for a consecutive period of six months.

Leamed counsel for the petitioner submits that the petitioner suffered heavy losses due to import duty classification issues and lack of new business opportunities and hence, he could not frle returns. Norv, the petitioner wants to revive the business but the time limit for filing rt: 1 l ,) t I I

...r.. the re'rocation application or appeal having lapsed, he approached this Court.

Lcar:ned Special Gor-ernment Pleader for State Tax submits that the apparent reason for cancellation of GST regrstration rvas on account o[ norr-filing of rcturns for tl'rc consecutive period of six months.

Har-ing regard ro the atoresaid facts and crcumstances and also taking note of thc facr thar the GST registration of the petitioner was cance.led on account of non-filing of rctums for a consecutive period of six m:nths, i[ thc petitioncr approaches the competent authority rvithin a period oF one rveek from today for submission of application for revocation of cancellation o[ GST registration, in physical form, the competent authoriry* would entertain it and take a decision thereupon in accordance rvith larv u,ithin a period oIthree weeks thereafter. 6. 'l'hc instant Writ Petition is accordingly disposed of. There shall be nc, order as to costs. Nliscellaneous applicarions pending, if any, shall stand closed. .L. VIJAYA LAXMI REGISTRAR /II OFFICER To, 1 .^^conk) ---

2.3.

One CC to Sri V. Veeresham, Advocate [OpUC]

Two CCs to the "i riy;";;;ifff?iGP for state rax, Hish court for the state of retangana,

TJ BS Pn4^ Two CD Copies

! HIGH CCIURT DATED:11210212026 ORDER WP.No.4256 of 2026 HE STA 1 iC) t-) ? 7 [tB 2026 * * DISPOSIING OF THE WRIT PETITION WITHOUIT COSTS @*, eal>\Lt ': I

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.