M/S. Kvr Enterprises vs. Deputy State Tax Officer

WP/16612/2025HC TelanganaGSTCNR HBHC01032219202531 July 2025Bench: APARESH KUMAR SINGH,JUSTICE6 pages

For Petitioner: SRI K. P. AMARNATH REDDYFor Respondent: MS. B. KAVITA YADAV, SC FOR CENTRAL, GOVERNMENT

AI SummaryRemanded

Facts

The petitioner, M/s. KVR Enterprises, filed a writ petition challenging the cancellation of its GST registration by the Deputy State Tax Officer (1st Respondent) on August 4, 2024. The cancellation was due to non-filing of GST returns for six consecutive months. The petitioner stated that the non-filing was due to its partners working on projects in Nepal and the ill health of its accountant, leading to an inability to submit returns. The petitioner sought to file a revocation application but was prevented by the GST portal's time limit. The petitioner requested the court to direct the 1st Respondent to entertain their application manually. The Special Government Pleader for State Tax acknowledged that there were no outstanding dues and agreed that the application could be entertained manually.

Held

The Court noted that the petitioner's GST registration was cancelled for non-filing of returns for six consecutive months and that there were no outstanding dues against the petitioner. The Court acknowledged the petitioner's submission regarding the reasons for non-filing and the inability to use the GST portal for revocation due to time limitations. The Special Government Pleader for State Tax did not dispute these facts and agreed that the application could be entertained manually. Therefore, the Court directed that if the petitioner approaches the 1st Respondent within one week from the date of the order for submission of an application for revocation of cancellation of GST registration in physical form, the 1st Respondent shall entertain it and take a decision thereupon in accordance with law within three weeks thereafter. The ratio decidendi is that in cases where there are no outstanding dues and the non-filing of returns is due to extenuating circumstances, and the statutory portal prevents timely filing of revocation applications, the authorities should consider entertaining such applications manually.

Key Issues

1. Whether the cancellation of the petitioner's GST registration by the 1st Respondent is illegal, arbitrary, and in contravention of the petitioner's fundamental right to carry on business, contrary to Section 37(5) of the Central Goods and Service Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner contended that the cancellation was illegal and arbitrary, violating their right to conduct business. They argued that the non-filing of returns was due to unavoidable circumstances (international work and staff illness) and that they had no outstanding dues. They further argued that the GST portal's time limit prevented them from filing a revocation application, and therefore, the 1st Respondent should be directed to accept their application manually. Revenue's arguments: The Special Government Pleader for State Tax did not dispute the petitioner's claim of having no outstanding dues. They conceded that the cancellation was solely for non-filing of returns and agreed that the petitioner's application could be entertained manually by the 1st Respondent if directed by the Court.

Sections Cited

Section 37(5)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[3480]' Between: M/s. KVR Enterprises, rep. by its lVanaging Partner, t\,,lr. Eshwar Karine, Door No.1 -9-27 81 49lcl 1 I Al 1, New Balaji Nagar, Ramnagar, Hyderabad, Telangana- 500 044. IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTY FIRST DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 16612 OF 2025 .,PETITIONER A,ND 1 2 J Deputy State Tax Officer, O/o Assistant Commissioner (State Taxes), Musheerabad Circle, Secunderabad Division, Telangana. State of Telangana, rep. by its Secretary to Government (Revenue), State Tax Department, Secretariat, Hyderabad- Union of lndia, rep. by its Secretary (Revenue), North Block, New Delhi. ...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 of Mandamus or any other appropriate writ or order or direction declaring the action of the 1't Respondent in cancelling the GST registration certificate of the petitioner vide GST No.36AAHFK3889N1Zl, on suo moto as illegal, arbitrary and in contravention of fundamental right to carry business and also contrary to Section 37(5) of the Central Goods and Service Tax Acl, 2017 and the Telangana Goods and Services Tax Act, 2017 and consequently set-aside the order for Cancellation of Registration dated 4.8.2024 of the '1st Respondent. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed n support of the petition, the High Court may be pleased to suspend the order of 1st Respondent dated 4.8.2024 and consequently direct the 1st Respondent to Revive the GST Registration portal of the petitioner GST No. 35AAHFK3889N 1Zll, cending disposal of the above Writ Petiticn as otherwise the Petitioner will be pul to severe loss and hardship. Counsel for the Petitioner: SRI K. P. AMARNATH REDDY Counsel for the Respondent Nos.1 and 2: SRI SWAROOP OORILLA, SPECIAL GOVT PLEADER FOR STATE TAX Counsel for the Respondent No.3: MS. B. KAVITA YADAV, SC FOR CENTRAL GOVERNMENT

The Court made the following: ORDER

THE HON'BLE THE CHIEF JUSTICE SRI APARESH KIJMAR SINGH AIID TIIE HON'BLE SRI JUSTICE G.M.MOHIUDDIN 1VRIT PETITION No. 1661 2 of 2025 ORDER: Sri K.P. Amarnath Reddy, lear-ned Counsel for the petitioner. Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appears for responclent Nos.I and 2. Ms. B. Kavita yadav, iearned Standing Counsel for Central Government appears for respondent No.3. 2. The GST registration of the petitioner bearing No.36AA}IFK3889NIZI was cancellecl uide impugned order passed in Form GST REG 19 dated O4.O9.2O24 for non_ filing of returns for a conseculive period of six months. The Writ Petiilon has been filed on 14.06.2025 for revocation of the cancellation ol GST registration of the petitioner.

Learned Counsel for the petitioner submits that there are no outstanding GST dues left to be paid by the petitioner. It is submitted that non filing of the returns was for the reason that the petitioner had gone for ongoing \

E ) works to Nepal and there were intr:nlional delay an application other office staff lo no sulrrrit returns apart from its accountant, wl_ro due to ill_ heerlth had stopped coming abruptly aIld there rvas no Though the petitioner has sought to file for revocation of cancellation ol GST registration, but the GST poftal does not perxlit it as being beyond the time limit prescribed for submission. Therefrrre, he prays that respondent No. 1 ntay be clirected to etltertain the petitioner,s application manually ancl take er decision thereupon in accordance with lavv

I-carned Special Government pleader for State Tax does nct dispute the fact that no outstanding ciucs rentain as aqatnst the petitioner. The cancellation ol GST registrar ion was only on account trf non_firing of retums ror the cons;ecutive period of six mon rs. He submrts that if the p,31i.16n6r is directed to approach respondcnt No. I _ Deputy State Tax Oflicer, Musheerabacl Circle. Secun,le'abad Division. its appricauon can be entertarned manu,uy as the GST portal does not permit submissio, of applica tic,n beyond the prescribecl time limit. It is also "*f1*..i$;;-

3 submitted that respondent No ' 1 would consider the application in accordance with law'

Having regard to the aJoresaid facts and circumstances and also taking note of the fact that the GST registration of the petitioner was cancelled on account of non-filing of returns for the consecutive period of six monthsandthattherearenooutstandingduesagainstthe petitioner, in case if the petitioner approaches respondent No.1 within a period of one week from today for submission of application for revocation of cancellation of GST registration in physical form, respondent No ' 1 would entertainitandtakeadecisionthereuponinaccordalce with law within a period of three weeks thereafter'

The Writ Petition is accordingly disposed of' Miscellaneous petitions, pending if any' stand closed' A.PRATHIMA DEPUTY REGISTRAR //// k SECTI FFICER -o',1 Deoutv State Tax Officer, O/o Assistant Commissioner (State Taxes)' Musheerabad ' Cirble, Secunderabad Division, Telangana' 2 The secretary to coreinii,dii'iiJulnl"l' st't" Tax Department Secretariat' state of Telanqana, HYderabad' e iheGii&arv (neuenuJi Union of lndia' North Block' New Delhi ; d;"cC't;' s?i'k.-P Am;;nath Reddv, Advocate [oPtlcl 5 Two CC to The speciat '6p'?J; sr;i;ir;, H'gticou|.t for ihe state of Telangana, at HvderabadlOUTl o 'cj,i." dC tirtrs. 6. favita Yadav, SC for Central Government[oPUC]

Two CD CoPies TJ LS

HIGH COURT DATED:31 10712025 ORDER WP.No.16612 of 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS ) 't::) t) 2 0 tiT 2s5 \,^),, \**- \-/.)ir,.,.,..- , \_::----__-. _ -r_._ ,/ 1o

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.