M/S Finman Global PVT. LTD. vs. Union Of INDIA - Telangana High Court, 03 July 2023

Cause title — parties, addresses and appearances

[ 3311 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY,THE THIRD DAY OF JULY TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 16806 OF 2023 Between M/s Finman Global Pvt. Ltd., 102, East l\,laredpally, Manbhum Kumars Residency, Tukaram Gate Road, Secunderabad, Hyderabad, Telangana, 500026, Represented by its Authorised Representative. ...PETITIONER AND 1. Union of lndia, Ministry of Finance, Represented by its Secretary, North Block, New Delhi-110001. 2. State of Telangana, Rep by lts Principal Secretary, Revenue, CT Department, Secretariat, Telangana, Hyderabad-500022. 3. Commissioner of Commercial Taxes, Govt of Telangana, CT Complex, Nampally, Hyderabad, Telangana-500001 . 4. Assistant Commissioner, Vidyanagar Circle, 5-9-279 9th. Floor, Mayur Kushal Complex, C-Block, Abids, Hyderabad,50000'1. 5. Deputy State Tax Officer, Vidyanagar Circle, 5-$.279 gth. Floor, Mayur Kushal Complex, C.Block, Abids, Hyderabad,500001. ...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 an appropriate Writ, order or direction, more particularly one in the nature of Writ of Mahdamus, a) To declare the action of Respondent. No. 5 in cancelling the GST registration certificate of the Petitioner bearing no. 36AABCF7703R126 vide cancellation order dated 25.01 .2023 as violative of Article 14 and 19 of the Constitution of lndia, Section 29(2) of the GST Act,2O17 R/w Rule 22 of the GST Rules, 2017 and the Principles of Natural justice. b) To set aside the impugned order dated 25.A nZ3 vide Ref. No. 2436012309262gA pars:d l)y Respondent no. 5 as be ng .r. itrary and rllegal and contrary to prirciples ()l na ural justice. c) consequenty o ' irr'ct the Respondents to revive the .ST p()r r lr o-the petitioner so as to enable th n to file their returns regularly and kr drrec; t.rem not to impose any penarties cn r€ petitioner for not firing such retLrns dL ri rg tre period the Respondenl has . r ile terally an(, illegally cancelled the regislrat (, IA NO: oF 2023 1 Petitiorr u.d. rlection 151 Cpc praying that in lhg c rcur^ ;tarces stated in the affidavit rile( I s upport of the petition, the High (;ou.t rr.ry b: pleased to suspend the ord.r r ated 25.01 .2023 bearing Ref . No. zA 360123(.g2e 49A wherein the GST registratior or the petitioner Company was cance ed pe.rdin,l disposal of the above writ periti( .1. Counsel for the F,et ti<Ingr , SRI. VIMAL VARMA VASI REDDY Counset for the Ftes )c ndent No.1 : SRI GADI PRAVEEN KUMAR, Dy. SoLICIToR GENE RAL (ri INcrIa Counsel for the Res rondent Nos. 2 to 5 : SRI L VENKATESHW qFl Rl\O . SC FOR COMMERCUTI_ TA(

// HON'BLE TTIE CHIEF JUSTICE UJJAL BHUYAN AND IION'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No.16866 of 2023 ORDER : (Per Hon'ble the Chief Justice Uijal Bhugan) Heard Mr. Vimal Varma Vasireddy, leamed counsel for the petitioner; and Mr.G.Praveen Kumar, learned Deputy Solicitor General of India for respondent No.l. Mr. L. Venkateshwar Rao, leamed Standing Counsel for Commercial Tax waives notice on behalf of respondent Nos.2 to 5. 2. By filing this petition under Article 226 of the Constitution of India, petitioner has assailed legality and validity of the order dated 25.01.2023 passed by respondent No.5 whereby, Goods and Services Tax (GST) registration of the petitioner has been cancelled.

Petitioner is a company and is engaged in the business of providing financial and business support services. After coming into force of the GST regime, petitioner had obtained GST registration certificate on 19.07 .2018 bearing Registration I

.;€. 2 lt(1&_\TR..l l .l' .\t). t 6,t66 of 202-l dilisentl lled service tax rcturns till Jarruarl, 2 021 in the CST portal. \ /l Lile trying to tllc GST retums fcr tlrc r;::sc lucrrt pcriod, pc1 tionc lbund that the GST' portal refleltcd trriLt irr; r.cgrstration hacl b;c cancelled. On inquiry, petit ouer itllu( act.oss thc inrpug rc c,rdel dated 25.01.2023. -1. .c nre<l counsel for the petitioner subrnil-. tha thougli the in.rpugncr older mentions about show (:aui(r notice dated I l.(18..10; 2 and reply'of thc petitioner daterl 19.0;.2022, pcritioner has rrot lr :en serued with the show cause r otice rl, Ltcd I I .09.2022 till tlatr:: rc refore, question of petitioner fi ing ar1, r.cply 61oc, ,., alisc. IIc hirs pointed out to the impugned order, rr crc particularly to li ,rc Nr s. I and 2 theleof, and contends that tht r mpugned order is sclt--ror .rrrdictory. While in the first line, it r.efr:-., to petitroner,s rcplv d:rtt I 19.09.2022 in response to show ca ts,e noticc dated 11.01i.2t)2 , in the second line it says that no r.e ply t.l the show cause noti e was submitted by the petitioner. No.36A. ,ltCFll031126. According to rhc 1-,,..riri rncr, ir hacl

'*rV ./. 3 IICJ & ,\'1'R, J ll'. I'. No. I 6866 of 2023

Learned Standing Counsel for Cornrncrcial T.ax t'airly submits that in a case of this nature, it would be just and proper to I \ remand the matter back to respondent No.5 to re-do the exercise after giving,an opportunity of hearing to the petitioner

In view of the above, we set aside the impugned order dated 25.01.2023 and remand the matter back to the frle of the respondent No.

Since petitioner is now in receipt of a copy of the cancellation order including show cause notice dated I 1.08.2022 which has been placed on record, it would be open to the petitioner to submit its reply to the show cause notice. [f the petitioner submits its reply within seven days from today, the same shall be taken on board by respondent No.5 who shall thereafter pass appropriate order in accordance with law after giving due opportunity of hearing to the petitioner. The same shall be done within a period of four weeks from the date of receipt of the show cause reply. 7 . Writ petition is accordingly allowed. No costs 0I

\--___-_""" t \. _,]nf! '\ ..; I H(',] .( \ I R, ,J lt'. a -\it.lt 366 of 202-l li. l)crrrlit 3 nrisccllal)eous applications, if irny, shrtll stancl c losccl //// lr\.V.S. PRASAD ASSIS TA]'IT REGISTRAR , .ll _. I:iECTION OFFICER ary,Union of lndia, Ministry of Finant;e, No tlr Bkrck, New Delhi- )al Secretary, Revenue, CT Deparlment, li:ate of Telangana, Telangana, Hyderabad-500022. s:;ioner of Commercial Taxes, Govt cf Telerttr;anil, CT Complex, ly Jerabad, Telangana-500001. rnt Commissioner, Vidyanagar Circle, 5-9'2;'i) 9tr. Floor, l\rlayur rplex, C-Block, Abids, Hyderabad,500()01 . ' litate Tax Officer, Vidyanagar Circl(), 5-9-:17 I gth. Floor, Nilayur rp ex, C-Block, Abids, Hyderabad,500()

01.

Sil. VIMAL VARI\4A VASI REDDY, AJvocat -'. [OPUC] SRI. GADI PRAVEEN KUMAR, DY. SOLI(:I-'OR GENERAL OF tcl o SRI L VENKATESHWAR RAO, SC F(:)R COIVIh/ERCIAL jl pi:s I To, SB LS '1 . The Ser;rr: 1 10001

The Princ Secretarial

The Coinn Nampally,

The Asr;isl Kusl- al ()crr

The Det)ul Kust al (lot

One CC to 7. One CC tr rNDrA.[OP

One C(l TAX IOt'Lr

Two CD Cr

HIGH COIJI:I' DATED:0itlt 712023 ORDER WP.No.16{}6 5 of 2023 ALLOWIN(i '}{E WRIT PETITION WITHOUT ICI)I}TS './ / .'.\ l:-"- --,--:--_-::--- 11 jlll- 2[4 t:- f'- Ir rnl)-r -Ir\1 'Y)