M/S M.D.Traders vs. Deputy State Tax Officer

WP/16973/2025HC TelanganaGSTCNR HBHC01034070202503 July 2025Bench: SUJOY PAUL,RENUKA YARA5 pages

For Petitioner: SRI GOONDLA VENKATESWARLUFor Respondent: SRI SWAROOP OORILLA, LEARNED SPECIAL, GOVT PLEADER FOR STATE TAX

AI SummaryRemanded

Facts

The petitioner, M.D Traders, represented by its proprietor Sri Mohd. Dastagir, filed a writ petition before the Telangana High Court. The petition challenged three orders/notices issued by the Deputy State Tax Officer: a show-cause notice-cum-order dated March 6, 2024, for cancellation and suspension of registration (Form GST REG-17); an order dated August 13, 2024, for cancellation of registration (Form GST REG-19); and a show-cause notice dated October 11, 2024, for rejection of an application for revocation of cancellation of registration (Form GST REG-23). The petitioner sought to set aside these impugned actions. An interim application was also filed seeking suspension of the said notices and orders, citing potential irreparable economic loss to the petitioner. The matter was heard by the Acting Chief Justice Sujoy Paul and Justice Renuka Yara.

Held

The Court noted that during the hearing, the parties reached a consensus. The petitioner had filed an application dated May 6, 2025, under Section 30 of the Central Goods and Services Tax Act, 2017, which was pending before Respondent No. 1 (Deputy State Tax Officer). The consensus was that this pending application should be decided by the authority within a period of seven days from the date of production of a copy of the Court's order. The petitioner was directed to resubmit the application along with a copy of the order. Respondent No. 1 was then directed to consider and decide the application in accordance with the law by passing a reasoned order within seven working days of its resubmission. The outcome was to be communicated to the petitioner. The writ petition was disposed of in light of this consensus, without expressing any opinion on the merits of the case. No costs were awarded. Any pending miscellaneous petitions were also closed.

Key Issues

1. Whether the impugned show-cause notice-cum-order in Form GST REG-17 dated 06-03-2024, the order of cancellation of registration in Form GST REG-19 dated 13-08-2024, and the show-cause notice for rejection of revocation application in Form GST REG-23 dated 11-10-2024 are legally valid and ought to be set aside? (Question of law and mixed fact and law, concerning the procedural fairness and substantive grounds for cancellation/rejection under GST law). Contentions of the Petitioner: The petitioner argued that the impugned notices and orders were causing irreparable economic loss and affecting their livelihood for an extended period. They sought the suspension of these actions pending final disposal. Contentions of the Respondents: The respondents, represented by the Deputy State Tax Officer and the Government of Telangana, did not explicitly record arguments in the judgment regarding the merits of the impugned notices and orders. However, their presence indicated their defense of the actions taken.

Sections Cited

Section 30

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[ 3446 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRD DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 16973 OF 2025 Between: It//s M.DTraders, Represented by its Proprietor. Sri Mohd.Dastagir, D.No.19-3- 262lAl44l45lB, Nawab Sab kunta, Hyderabad, Telangana. PlN. 500005. ....,PETITIONER AND Deputy State Tax Officer, Lad Bazar Circle, Charminar Circle. 11 Floor, Gaganvihar Building,Nampally, Charminar Division, Hyderabad. PlN.500 0Ol . Government of Teiangana, (Commercial Tax) Represented by the Secretary to Government of Telangana, Revenue Department, Government Secretariit Buildings Saifabad, Hyderabad. Telangana- PlN. -500 004. 1 2 .....RESPONDENTS Petition Under Article 226 ot the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction, more in the nature of Writ of Mandamus, setting aside the impugned alleged show-cause Notice-cum-order in Form GST REG-1 7 dated 06-03-2024 to cancel and to suspend the registration, the impugned alleged orders of cancellation of the Registration in Form GST REG-19 dated 1 3-08-2024 and the alleged show-cause Notice for rejection of application for revocation of cancellation of registration in Form GST REG-23 dated 11 -1O-2O24. |.A.NO:1 OF 2025 Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to suspend show-cause Notice-cum-order in Form GST REG-'I 7 dated 06-03-2024 and the order of the cancellation of registration in Form GST REG-19 dated '1 3- 08-2024, and the notice for the rejection of application for the revocation of cancellation of the registration of the petitioner in Form GST REG-23 dated 11- 10-2024 for the above detailed reasons, and to pass such other order or orders in the interest of Justice, lest the Petitioner would be put to irreparable economic loss. His livelihood is being continued to be affected even after more than 50 months fictionally. Counsel for the Petitioner : SRI GOONDLA VENKATESWARLU Counsel for the Respondents : SRI SWAROOP OORILLA, LEARNED SPECIAL GOVT PLEADER FOR STATE TAX

The Court made the following ORDER

THE HON'BLE THE ACTING CHTEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.16973 of 2o25 ORDER: (Per the Hon'ble the Acting Chief Justice Sujog.Paul) Sri Goondla Venkateswarlu, learned counsel for the pctitioner and Sri Swaroop Oorilla, learned Specia,l Government Pleader for State Tax, for the respondents.

With the consent, hnally heard.

During the course of hearing, the parties reached to a consensus that the petitioner's application dated 06.05.2025 fied under Section 3O of the Central Goods and Services Tax Act, 2O17, which is pending consideration before respondent No.l, may be directed to be decided by the said authority within a period of seven days from the date of production of a copy of this order

In view of the consensus arrived at, the petitioner is directed to resubmit the aforesaid application along with a copy of this order before respondent No.l. In turn, respondent No.l shall consider and decide the said application in accordance with law \ T i I

2 To SA LS by passing a reasoned order within seven working days from the date of resubmitting the said application along with a copy of this order. The outcome shall be communicated to the petitioner.

Accordingly, the vvrit petition is disposed of without expressing any opinion on the merits of the case. No order as to costs Miscellar-reous petitions pending, if any, shail stand closed S /. L. VIJAYA LAXMI STANT REGISTRAR //II The Deputy State Tax Officer, Lad Bazar Circle, C ! SECTION OFFICER inar Circle. 11 Floor, Gaganvihar Building,Nampally, Charminar Division, Hyderabad, PlN.500 001. 2. The Secretary to Government, Government of Telangana, (Commercial Tax), Revenue Department, Government Secretariat Buildings Saifabad, Hyderabad. Telangana- PlN. -500 004. 3. One CC to SRI GOONDLA VENKATESWARLU, Advocate [OPUC]

Two CCs to SRI SWAROOP OORILLA, LEARNED SPECIAL GOVT PLEADER FOR STATE TAX, [OPUC]

Two CD Copies 1 1-,, w

HIGH COURT DATED:0310712025 ORDER WP.No.16973 of 2025 DISPOSING OF THE W.P C) 2 0 sEP 2S25 WITHOUT COSTS. I i L i !.'./

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.