M/S. Cbr Logistics vs. The Deputy State Tax Officer

WP/929/2026HC TelanganaGSTCNR HBHC01001011202609 January 2026Bench: APARESH KUMAR SINGH,G.M. MOHIUDDIN7 pages

For Petitioner: SRI V.VEERESHAM, loylsel for the Respondents : SRt SWAROOP OORiLLA, SPEC|AL GOVT, PLEADER FOR STATE TA)(

AI SummaryRemanded

Facts

M/s. CBR Logistics (Petitioner) filed a writ petition challenging the cancellation of its GST registration by the Deputy State Tax Officer (1st Respondent) on 10.02.2025, for non-filing of returns. The Petitioner's application for revocation of this cancellation was rejected on 23.05.2025. Subsequently, the Petitioner filed a belated appeal, which was also rejected by the Appellate Joint Commissioner (2nd Respondent) on 28.11.2025. The Petitioner contended that there were no outstanding GST dues and that the non-filing of returns was due to financial difficulties arising from vehicle breakdown and lack of business opportunities, not intentional delay. The Respondents argued that the appeal was rejected due to delay, and the Petitioner needed to clear any outstanding dues.

Held

The Court noted that the Petitioner had preferred a belated appeal, which was rejected by the appellate authority. However, considering the Petitioner's inclination to approach the competent authority, the Court granted liberty to the Petitioner to file an application for revocation of the cancellation of its registration within two weeks from the date of the order. The Court directed that if such an application were filed, the competent authority would consider the Petitioner's request in accordance with the law. It was also clarified that the Petitioner would be required to pay any outstanding tax dues, if any, before their request could be entertained. The Court did not make any specific findings on the legality or arbitrariness of the initial cancellation orders or the rejection of the revocation application, implicitly allowing the Petitioner to pursue the matter afresh.

Key Issues

1. Whether the cancellation of GST registration and subsequent rejection of the revocation application and appeal were arbitrary, illegal, and violative of natural justice and constitutional provisions (Articles 14, 19(1)(g), 21, and 265)? 2. Whether the Petitioner should be granted liberty to approach the competent authority for revocation of cancellation of registration, considering the circumstances presented? Petitioner's Arguments: The Petitioner argued that the cancellation orders were void, arbitrary, illegal, and without jurisdiction. They emphasized that there were no GST dues outstanding and that the non-filing of returns was due to unavoidable financial hardships and not intentional. They relied on the principles of natural justice and constitutional guarantees. Respondents' Arguments: The Special Government Pleader for State Tax submitted that the Petitioner's appeal was rejected on grounds of delay. He stated that he had no instructions regarding the assertion of no outstanding dues. He highlighted the time limits prescribed under Rule 23(1) of the Telangana Goods and Services Tax Rules, 2017, for approaching the Proper Officer. However, he conceded that the Court could pass appropriate orders as it deemed fit.

Sections Cited

Section 29(2)(c), Rule 23(1), Rule 23(2)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3488 I IN THE HIGH COURT FOR THE STATE OF TETANGANA AT HYDERABAD (Special Original J urisdiction) FRIDAY, THE NINTH DAY OF JANUARY 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: 929 OF 2026 Between: M/s. CBR Logistics, Haivng address at 5-18, Neelojipalli Village, Boinpalli Mandal, Rajanna Sircilla, Telangana- 505 402 Represented by its Managing Partner, Ellandula Chiranjeevi, S/o. Lingaiah, aged about 47 years, R/o. Q No. F-200, OCC Colony, Devapur, Adilabad, Telangana- 504 218. .....PETITIONER AND 1. The Deputy State Tax Officer, O/o. Assistant Commissioner of ST, Siricilla Circle, Karim Nagar Division, H. No. 7-1-25,2nd Floor, TNGO's Building, Mankammathotha, Karimnagar- 50 001 . 2. The Appellate Joint Commissioner, Hyderabad Rural Division, Sth Floor, C.T. Complex, Nampally, Hyderabad- 500 004. 3. 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 bg- pleased to issue a Writ, Order, or direction more particularly one in the nature of a Writ of Mandamus, a)declaring order issued, cancelling the GST registration vide Ref. No. 2A360225025417Q in Form GST REG-19 dated 10.02.2025 and the order rejecting the revocation application in Form REG 05 vide ref. no. 2A3605250682785 dated 23.05.2025 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 1a, 19(1Xg), 21 and 265 ol the constitution of lndia, and to consequently set aside the same by restoring the GST registration of the Petitioner and pass such further or other order(s) as this Honourable court may deem fit and proper in the circumstances of the case and pass such further or other orde(s) as this Honourabre court may deem fit and proper in the circumstances of the case, and/or b)declaring the rejection of the appeal vide order ref. no. 2D361125O898S6V dated 28.11.2025 and Form ApL 02 issued by 2nd respondent, as being void, arbitrary, i egal, without authority of law and without jurisdiction, violative of the principles of Natural Justice apart from being violative of Articles 14, 19(1Xg), 21 and 26s of the constitution of lndia, and to consequently set aside the same by restoring the GST registration of the Petitioner. |.A.NO:1 OF 2026 Petition under Section 'ls1 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 cancelling the GST registration vide Ref No. 2436o225o25417Q in Form GST REG-19 dated 10.02.2025 in the interest of Justice and equity as othenarise, the petitioner will be put to irreparable loss and hardship. Counsel for the Petitioner : SRI V.VEERESHAM loylsel for the Respondents : SRt SWAROOP OORiLLA, SPEC|AL GOVT PLEADER FOR STATE TA)(

The Court made the following ORDER

IN THE IIIGH COURT FOR THE STATE OF TELANGAI{A AT HYDERABAI) THE HON'BLE TTIE CHTEF JUSTTCE SRI APARESH KTIMAR SINGTI AND THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN WRIT No.929 of 2026 DATED : 09.01.2026 Between: IWs. CBR Logistics Petitioner AND The Deputy State Tax Officer, O/o Assistant Commissioner of ST, Siricilla Circle, Karimnagar Division, Mankammathotha, Karimnagar and two others Respondents ORDER: Sri V. Veeresham, learned counsel appears for petitioner Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appears for respondents.

The Goods and Services Tax (GST) Registration Certificate of the petitioner bearing No.36AAQFC8200LIZ6 was cancelled vide Order for Cancellation of Registration passed in Form GST REG-19 dated 10.02.2025 for non-filing / / of returns for the prescribed periods in contravention of the HCJ (AKrS, Jl& cMM, J provisions of Section 29(2)(c) of the Telangana Goods and Services Tax Act, 2017. Its application for revocation of cancellation was rejected vide order dated 23.05.2025. However, it chose to prefer a belated appeal which has been rejected by the appellate authority vide order dated 2g. 11.2025. 3. Learned counsel for the petitioner submits that there are no Goods and Services Tax dues left to be paid by the petitioner. It is submitted that non-filing of returns was for the reason that the petitioner had suffered heavy losses due to vehicle breakdown and lack of new business opportunities during the relevant tax period and there was no intentional delay. Therefore, the petitioner has approached this Court. 4. l-eamed Special Government pleader for State Tax submits that the appeal preferred by the petitioner has been rejected on the ground ofdelay. He does not have instruction on the assertion that there were no outstanding dues against the petitioner which in any case, the petitioner has to clear before any such request is to be entertained by the competent

3 HCJ (AKrS, Jl &GMM, J W.P.No.929 of 2O26 authority under Rule 23(2) of the Telangana Goods and Services Tax Rules, 2017 (for short 'the Rules'). He also points out the time limit prescribed under Rule 23(l) of the Rules for approaching the Proper Officer. He however submits that this Court may pass appropriate orders as may deem fit in the facts of the case.

Having considered the submissions of learned counsel for the parties, it appears that the petitioner preferred the appeal belatedly.

Be that as it may, since the petitioner is inclined to approach the competent authority in terms of Rule 23(l) of the Rules, liberty is granted to the petitioner to do so for revocation of cancellation of its registration within a period of two (2) weeks from today. In case such an application is filed, the competent authority would consider the petitioner's request in accordance with law. Needless to say, the petitioner would be required to pay outstanding tax dues, if any.

HCJ (AKIS, J) & cMM, J To SA PMK The instant Writ Petition is accordingly disposed of. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed. .K.MAD ASSISTAN /,// SECTION OFFICER 1 ssioner of ST, Siricilla , TNGO's Building, Mankammathotha, Karimnagar- 50 001

The Appellate Joint Commissioner, Hyderabad Rural Division, Sth Floor, C.T Complex, Nampally, Hyderabad- 500 004. 3. The Principal Secretary to Government, Revenue Department (Commercial Tax), Secretariat Complex, State of Telangana at Hyderabad, Telangana.

One CC to SRI V.VEERESHAM, Advocate [OPUC]

One CC to SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STATE TAX, Advocate [OPUC]

Two CD Copies ,W

d j I HIGH COURT DATED:09/01 12026 ORDER WP.No.929 of 2026 DISPOSING OF THE W.P WITHOUT COSTS. o () t$ia 'l'riE S 1 0 rEB 2028 * * \ ,LL

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.