M/S Arman Trading Co. vs. The Superintendent Of Central Tax

Facts

The Petitioner, M/s Arihant Trading Co., represented by its Proprietor, Sri Tanjim, filed a writ petition before the High Court of Telangana. The petition challenged an alleged show-cause notice-cum-order in Form GST REG-17 dated 13.02.2025, issued by the Superintendent of Central Tax, Shivarampally-II Range, for the cancellation of the petitioner's GST registration. The petitioner also sought an interim order to suspend the alleged order of suspension of registration. The petitioner stated that due to the suspension of registration, their business is suffering significant losses. The respondents were the Superintendent of Central Tax and the Union of India.

Held

The Court noted that the petitioner had approached the High Court at an early stage, challenging a show-cause notice. The respondent No. 1, through its counsel, submitted that a decision on the cancellation of registration would be taken within three weeks if the petitioner filed a reply affidavit within one week. Considering this submission and the early stage of the proceedings, the Court deemed it appropriate to dispose of the writ petition with liberty to the petitioner to file their reply affidavit before Respondent No. 1 within one week. The Court made it clear that it would be open for Respondent No. 1 to take a decision on the show-cause notice dated 13.02.2025, in accordance with law, within a period of three weeks from the date the petitioner files their reply affidavit, or if the petitioner fails to file the reply affidavit within one week from today. The Court explicitly stated that it had not gone into the merits of the case.

Key Issues

1. Whether the High Court should entertain a writ petition challenging a show-cause notice-cum-order for cancellation of GST registration, given the procedural remedies available to the petitioner? 2. What is the appropriate course of action when a petitioner approaches the High Court at an early stage of a tax proceeding, specifically challenging a show-cause notice? Contentions of the Petitioner: The petitioner argued that the suspension of their GST registration has led to significant business losses. They sought the intervention of the High Court to set aside the impugned notice and restore their registration. Contentions of the Respondent: The learned Senior Standing Counsel for the respondent No. 1 submitted that if the petitioner files a reply affidavit within one week, a decision on the cancellation of GST registration would be taken within three weeks thereafter. The respondents did not raise any preliminary objection regarding the maintainability of the writ petition.