M/S. Chilvari Satyanarayana vs. The Deputy State Tax Officer

WP/2661/2026HC TelanganaGSTCNR HBHC01004779202602 February 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN6 pages

For Petitioner: SRI KOHIR BHASKAR REDDYFor Respondent: SRI SWARROP OORILLA, Special Govt Pleader for State Tax

AI SummaryRemanded

Facts

The petitioner, M/s. Chilvari Satyanarayana, filed a writ petition challenging the cancellation of its GST registration by the Deputy State Tax Officer, Sangareddy-I Circle. The registration was cancelled on August 22, 2024, for non-filing of returns for six consecutive months. The petitioner sought revocation of this cancellation. The petitioner's counsel submitted that the non-filing was due to the accountant abruptly leaving the job without notice. The petitioner attempted to file a revocation application, but the GST portal did not permit it as it was beyond the prescribed time limit. The petitioner requested the court to direct the respondent to entertain the application manually.

Held

The Court noted that the GST registration was cancelled due to non-filing of returns for six consecutive months. The petitioner's counsel explained the reason for non-filing was the abrupt departure of their accountant. The Court acknowledged that the GST portal did not permit the filing of a revocation application beyond the prescribed time limit. Considering the submissions from both sides, the Court directed that if the petitioner approaches the first respondent (Deputy State Tax Officer) within two weeks from the date of the order for submission of the application for revocation of cancellation of GST registration in physical form, the respondent would entertain it. The respondent was further directed to take a decision on the application in accordance with law within three weeks thereafter. The Writ Petition was disposed of accordingly.

Key Issues

1. Whether the cancellation of GST registration for non-filing of returns for six consecutive months, when the petitioner claims the non-filing was due to an accountant's abrupt departure, warrants judicial intervention under Article 226 of the Constitution of India, particularly concerning the principles of natural justice and the right to carry on business under Article 19(1)(g) and Article 21. Petitioner's contention: The petitioner argued that the cancellation was illegal and arbitrary, violating principles of natural justice and fundamental rights. They contended that the GST portal's inability to accept a late revocation application necessitated a direction for manual acceptance and consideration by the respondent. They relied on the circumstances of the accountant leaving without notice as a mitigating factor. Respondents' contention: The Special Government Pleader for State Tax submitted that the cancellation was solely due to non-filing of returns for six consecutive months. They agreed that if the petitioner approaches the respondent manually, the application could be entertained manually as the portal does not permit late submissions. They stated the respondent would consider the application in accordance with law.

Sections Cited

Article 19(1)(g), Article 21, Article 226

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

I [ 3488 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 2661 OF 2026 Between: tt//s. Chilvari Satyanarayana, O/o. H.No.3-83/1, NH 65, Muthangi, Sangareddy District, Telangana, Represented by its Proprietor, Sri. Ch.Satyanarayana. ...PETITIONER AND 1 The Deputy State Tax Officer, Sangareddy-l Circle,Nizambad Division, Sangareddy,Telangana. The State of Telangana,, Represented by its Principal Secretary to Government, Revenue Department (Commercial Tax), Secretariat Complex,Hyderabad, Telangana. ...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, declaring the order for cancellation of GST registration vide Ref No. 24360824063312M in Form GST REG-19 dated 2210812O24 issued by lst respondent, read with the rejection of the application for revocation of cancellation proceedings passed by the first respondent on 12lO1l2026,as illegal, arbitrary, violative of the Principles of Natural Justice, and in contravention of fundamental rights to carry business under Article 19(1Xg) and Article 21 of the Constitution of lndia and consequently, set aside the same by restoring the GST registration of the Petitioner. 2 - 1 I lA NO: 1 OF :2026 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of order for cancellation of GST registration vide Ref No. 2A36A82406:)312M in Form GST REG-19 dated 2210812024 issued by the 1st respondent, prending disposal of the present writ petition in the interest of Justice and equity as otherwise, the Petitioner will be put to irreparable loss and hardship. Counsel for the Petitioner: SRI KOHIR BHASKAR REDDY Counsel for the Respondents: SRI SWARROP OORILLA, Special Govt Pleader for State Tax

The Court marde the following: ORDER

TI{ N' AT HYDERABAT) ANI) ITI N P 1 Dated: 02.02.2026 Iletween M/s. Chilvari Sat-vanarayana ...Petitioner and The Deputy State Tax Otficer. Sangareddy-I Circle, Nizarnbad Division' SangareddY,'f elangana' and another. Respondents ORDER: Learned cottnsel Sri Kohir Bhaskar Reddy appears for the petitioner. Sri Swaroop oorilla, learned Special Government Pleader for State Tax, appears lor the respondents' I II

2 2. '-he GSl' registration of the petitioner bearing No.36ADBPCl4l9P27.M \\/as cancclled vide irnpugncd order passed in Form CiST ItE(i-19 datcd 22.08.1024 for non-fjling of returns fior a consecutive period of sir nronths. 'fhc ririt pctition has bcen filed on 14.01.2026 fbr rcvocation of the cancellation of'GS'[' rcgistration of the petrtronr:r

Learned couusel for thc pctitioner sutlnits that non-filing of the rcLurns was onl1, bccausc the accourrtant lrandlirrg the petitioner's ['rusiness activitl,' had lcfi the .iob abruptlv rr'ithout intirnation. f'hough the pctitioncr has sought to filc an application fbr revocation of cancellation of GST rceistration. thc GS'l' portal did not perrnit it as being beyond the tirne Iirnit prcscribecl l'or srrbrnission. -lhere[ore, he pra)/s thzrt respondent No.l ural' bc clirected to entcrtain the petitioner's applicati,rn uranualll, and takc a decision thereupon in accordance with lar,v.

Li:arncd Special Governrnent Pleadcr lbr Statc Tax subrnits that the cancellation of GST registration rvas onlv on account of,non-filing of returns fcrr the consecutive period of six rnonths. He submits that if the petitioner is directed to approach respondent No.l, its application can be entertaine:d rnanually as the GS1' portal does not perrnit submission of I /

J application beyond the prescribed time limit. It is also submitted that respondent No.l rvoulci consiclcr the apptication in accordance with law'

Flaving regard to the albresaid tacts and circumstances and also takilg note ol'the lact thal the GS'l' rcgistratiott of the petitioner was cancelled on accogtlt o{'non-liling of returns fbr the consecutive period of six urottths, in case the petitioner approaches respondent No.l/competetrt authority rvithin a period of trvo weeks liom today for subrnission o[' application 1.or revoczttion ol' cancellation of GST registration in physical fbrm. he would entcrtain it and take a decision thereupen. jn acgordance r.vith law rvithin a period of three weeks thereafter.

The Writ l)etition is. accordingly, disposed of. 'l'here shall be no order as to costs. Miscellaneous applications pending, if any, shall stand closed. I.K. ASSISTANT ,," SECTION OFFICER

Two CD CoPies DAN ;, t To, l.TheDeputyStateTaxofficer,sangareddy-|Circle'NizambadDivision, SangareddY,Telangana' 2'ThePrincipalSecretarytoGovernment,RevenueDepartment(Commercial ra x), state "f r:i;;;i, jl sl"i.i+i ;i' iil p | "i, u vo e iab ad, rel a ns a n a' 3.OneCCtoSRI.KOHIRBHASKARREDDY'Advocate[OPUCI 4 Two CCs to SPECIAL GP-I98. STATE TAX' High Court for the State of Telangana rt Hio"uGi"I' to[rt N

,,\ HIGH COIURT DATED i0210212026 ORDER WP.No.2661 of 2026 slr\iE (' 2 6 ttB ztffi q> r> I '1 -ri x DFs,p: t DISPOSING OF THE WRIT PETITION WITHOUT COSTS '.$\)*

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.