M/S. Afzal Pasha Shek Contractor And Manpower vs. Deputy State Tax Officer

WP/3302/2026HC TelanganaGSTCNR HBHC01005868202605 February 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN6 pages

For Petitioner: SRI K' P' AMARNATH REDDY

AI SummaryRemanded

Facts

The petitioner, M/s. Afzal Pasha Shek Contractor, filed a writ petition challenging the cancellation of their GST registration certificate by the Deputy State Tax Officer. The cancellation, dated February 22, 2023, was based on the petitioner's failure to file GST returns for six consecutive months. The petitioner contended that there were no outstanding GST dues and that the non-filing was due to their accountant's bona fide impression that there was no business activity during the period. The petitioner sought to file a revocation application, but the GST portal did not permit it due to time limitations. The petitioner requested the court to direct the respondent to entertain their application manually and decide it.

Held

The Court noted that the GST registration was cancelled due to non-filing of returns for six consecutive months. The Court directed that if the petitioner approaches Respondent No. 1 (Deputy State Tax Officer) within one week from the date of the order for submission of an application for revocation of cancellation of GST registration in physical form, Respondent No. 1 shall entertain it. Respondent No. 1 is to take a decision on the application in accordance with the law within three weeks thereafter. The Court disposed of the writ petition with no order as to costs. No specific finding was given on the legality or arbitrariness of the cancellation itself, nor was the fundamental right under Article 19(1)(g) explicitly addressed beyond the petitioner's submission.

Key Issues

1. Whether the cancellation of the petitioner's GST registration was illegal, arbitrary, and in contravention of the fundamental right to carry on business under Article 19(1)(g) of the Constitution of India and Section 37(5) of the Central Goods and Services Tax Act, 2017, and the Telangana Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner argued that the cancellation was illegal and arbitrary, infringing upon their fundamental right to conduct business. They claimed no outstanding dues and attributed the non-filing of returns to a bona fide mistake by their accountant. They also highlighted the technical inability to file a revocation application due to portal limitations. Respondents' arguments: The Special Government Pleader for State Tax stated they lacked instructions regarding the assertion of no outstanding dues. They acknowledged that the cancellation was solely for non-filing of returns for six consecutive months. They agreed that the petitioner's application could be entertained manually if directed by the court, and the respondent would consider it in accordance with the law.

Sections Cited

Section 37(5)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

rN rHE HrcH couRr [r"rtJ,:f":ffiI5 35*::hiT:l*o Ar HYDERABAD ', THURSDAY, THE FIFTH DAY OF FEBRUARY -Two iiousnr'rD AND TwENTY slx PRESENT THEHoN,BLETHECHIEFJUSTIG.ESRIAPARESHKUMARSINGH AND THE HoN'BLE snr 'lubircE G'M' MoHluDDlN WRIT PETITION NO: 3302 OF 2026 [ 3488 I ...PETITIONER Between: M/s. Afzal Pasha Shek Contractor Fl-rn" Snlr, tg-+4, Vidya Nagar, H,3"$1t1"#fJu5lrS,Lil',,iJ:fdl"l"diMrArzar o*? Deputy state Tax _officer,, o/o Assistant commissioner (state Taxes), wa ra n g a I _ JiE" " -i'i i c I*i L-, w" o n g a I D ivis io n' Te I a n g a n a' : 23l3[f:-I,"iTfl il"1bi::t#J'3"?:ffigY,S%S$?,'ffi fi Jffi:"lue)cr-rr' ...RESPONDENTS PetitionunderArticle226oftheConstitutionoflndiaprayingthatinthe circumstances stated in the affidavit filed therewith' the High court may be pleasedtoissue.aWritofMandamusoranyotherappropriatewritororderor direction declaring the action of the 1't Respondent in cancelling the GST registrationcertificateofthepetitionervideGsTNo36BHRPS0o29L2ZT,onsuo contravention of fundamental right to catry moto as illegal, arbitrarY and in business under Articre 1g(1xg) of the constitution of rndia and also contrary to -,: Section 37(S) of the Centrai Goods aiid Service'Tax Act' 2017 and the Telangana Goods and Services Tax Act, 201 7 and Gonsequently set-aside the order for CancellationofRegistrationdated22.2.2023ofthel"tRespondent. ./ IA NO: 1 OF Petition urrder section 151 CPC praying thatin the circumstances stated in the affidavit filerj in support of the petition, the High court may be pleased to suspend the order of 1't Respondent dated 22'2'2023 and consequently direct the 1.t Respondent to Revive the GST Registration portal of the Petitioner GST No.36BHRPS0029L2ZT, pending disposal of the above writ Petition as othenruise the Petitioner will be put to severe loss and hardship' Counsel for the Petitioner: SRI K' P' AMARNATH REDDY Counsel for the' Respondents: SRI SWAROOP OORILLA' SPECIAL GOVEiiiTVTiUT PLEADER FOR STATE TAX

The Court made the following: ORDER

:. --.- i-l IN THE HIGH COURT FOR THE STATE OF TELAT)IGANA AT HYDERABAD THE HON'BLE THE CHIBF JUSTICE SRI APARESH KUMAR SINGH AND THE HON'BLE SRI JUSTTCE G.M.MOHTUDDIN WRTT PETITION No.3302 of 2026 Dated: 05.02.2026 Between: M/s. Afzal Pasha Shek Contraotor & Manpower ...Petitioner and State Tax Offrcer, o. Assistant Commissioner (State Taxes), arangal-Urban-lll Circle, Warangal Division, Telangana, another. ...Respondents ORDER: Learned counsel Sri K.P.Amarnath Reddy appears for the petitioner. Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for the respondents.

The GST registration of the petitioner bearing No.36BHRP S002IL2ZT was cancelled vide impugned order passed in Form GST REG-19 dated 22.02.2023 for non-filing of returns for a / :i,r i \ ,

2 r-, consecutive period of six months. I'he Writ Petition has been filed on 30.01.2)26 for revocation of the cancellation of GST registration of the petitioner. 3. [,earned counsel for the petitioner subrnits that there are no outstanrling GST dues left to be paid by the petitioner. It is subn-ritted that norr-filing of the returns was for the reason that its accountant had not filerl returns on the bona fide irnpression that the petitioner had no businesr; during the relevant tax period and there was no intentional delay. 'fhough the petitioner has sought to frle an application for revocation of cancellation ol'GS1' rcgistration. but thc GST portal does not perrnit it as being beyond the tirne limit prescribed lor submissiol. Therefore, he prays that respondent No.l may be directed to cntertain the peti,.ioner's application rnanuallv and take a decision thereupon in accordance with law.

Learned special Government Pleader for state Tax subrnits that he does not have instruction on the asseftion that no outstanding dues remain against the petitioner. The cancellation of GST registration was only on account of non-filing of returns for the consecutive period of six rnonths. He submits that if the petitioner is directed to approach respondt:nt No.l, its application can be entertained manually as the GST t I

3 portal does not permit submission of application beyond the prescribed time limit. It is also submitted that respondent No.1 would consider the application in accordance with law. 5, Having regard to the afbresaid facts and circutnstances and also taking note of the facl that the GST registration of the petitioner was cancelled on account of non-fiting of returns for the consecutive period of six months, in case the petitioner approaches respondent No' l within a period of one week from today for submission of application for revocation of cancellation of GST registration in physical form, respondent No.l would entertain it and take a decision thereupon, in accordance with law. within a period of three weeks thereafter'

The Writ Petition is, accordingly, disposed of. However, there shall be no order as to costs. Miscellaneous petitions, pending if any, stand closed' 1 ,//' O/o Assistant .AHMED ABDULLAH KHAN ASSISTANT. REGISTRAR OFFICER ,' j ioner (State Taxes), To MP BS The Deoutv State Tax Officer, Warang'al-Orban-l ll Circle, Wara ngal Dlvision, Tel

The secretary to Governmglt (Revenue) cT-.11, state Tax I Commercial Taxes Departm#t, ldt oii"irrig"'na, Se6retariat, Hyderabad. :

One CC to SRI K. P. AMARNATH REDDY, Advocate toPUCI

Two ccs to sRl SWAROOP ooBl-L+, special Government- Ple-ader for 5. Two CD CoPies dt.-- : i i I I I I I I I I I i i i

\ \ HIGH COURT DATED iO510212026 THE S 'o (J t, 2 0 [88 2026 * ORDER WP.No.3302 of 2026 DISPOSING OF THE WRIT PETITION WITHOUT COSTS ti E: i : l i a tit I I a I $ .lrt' * .-'o

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.