Judgment
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 8570 OF 2026 (T-RES) BETWEEN:
SRI. GIRISH K SON OF KRISHNA, AGED ABOUT 36 YEARS, RESIDING AT NO. 4/78, HOUSING BOARD, NEAR I.B. CHOWDLU VILLAGE, CHOWDLU POST, SOMWARPET TALUK, KODAGU-571236.
…PETITIONER (BY SRI. PURNACHANDRA M PURANIK.,ADVOCATE) AND:
1.
STATE OF KARNATAKA DEPARTMENT OF COMMERCIAL TAXES, VANIJYA THERIGE KARYALAYA, BENGALURU-560009 GANDHINAGAR, KALIDASA ROAD, REPRESENTED BY ITS COMMISSIONER.
Digitally signed by VANAMALA N Location:
HIGH COURT OF KARNATAKA
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
2.
THE ASSISTANT COMMISSIONER, LGSTO 300- MADIKERI, KFSC BUILDING, INDUSTRIAL AREA, MADIKERI-571201.
3.
THE COMMERCIAL TAXES OFFICER, (AUDIT, MADIKERI), OPP KSB, HBO MAIN ROAD, MADIKERI-571201.
…RESPONDENTS (BY SMT.JYOTI M MARADI., HCGP)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO 1) SET ASIDE THE ORDER DATED 16.07.2024 BEARING REFERENCE NO.ZA290724064908V PASSED BY THE RESPONDENT NO.2 (ANNEXURE-A) AND RESTORE GST REGISTRATION OF THE PETITIONER BEARING NO.
29CWEPG8429FI2B (ANNEXURE-B);
II) SET ASIDE NOTICE DATED 20.09.2025 IN FILE NO.CTO(A)MDK/2025-26 ISSUED BY THE R3(ANNX-E).
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
ORAL ORDER The petitioner's grievance is with the Order of cancellation of GST registration dated 16.07.2024 [Annexure-A] and the question that is examined by this Court for interference with this Order is: whether this Court must restore the proceedings with liberty to the petitioner to show cause against the proposition to cancel the GST registration. Mr. Purnachandra M Puranik, the learned counsel for the petitioner and Ms. Malavika Prasad, the learned High Court Government Pleader for the respondents, are heard for a decision on the afore question.
This Court opines that the answer to the afore question must be in the affirmative for the following reasons.
[A] The petitioner's case is that he has filed ‘Nil’ Returns for the months between April 2021 and July 2023, but Notice is issued in June 2023
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
stating that Returns have not been filed.
[B] The petitioner asserts that his Auditor did not inform him about the cancellation of the GST registration and therefore he was not aware of the cancellation.
[D] The petitioner is willing to offer the amount of penalty and interest subject to set off towards the ITC that stands to his credit in the Electronic Ledger, and the petitioner will also file Returns.
[D] The Show Cause Notice refers to the petitioner's failure to file Returns without specifying the period and the petitioner's case is that he had filed ‘Nil’ Returns for the relevant period.
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
[E] The impugned order, insofar as the reason for the cancellation, only records as “others” without specifying anything in detail.
In these circumstances, this Court opines that the petitioner must have an opportunity to show cause against the cancellation of the GST registration and as part of such consideration, the second respondent must also examine whether the petitioner must be permitted to avail ITC to discharge the penalty and interest. Hence, the following.
ORDER
[A] The petition is allowed-in-part.
[B] The second respondent’s impugned Order of cancellation of registration of GST dated 16.07.2024 [Annexure-A] is quashed restoring the proceedings to the second respondent for reconsideration.
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CNR: KAHC010189402026 NC: 2026:KHC:48635 WP No. 8570 of 2026
[C] The petitioner shall file his Response to the Show Cause Notice dated 06.06.2023 [Annexure-C] furnishing the details of the ‘Nil’ Returns filed and the Returns for the succeeding months as well.
[C] This Court also observes that the second respondent shall consider all circumstances and pass just Orders permitting the petitioner to pay penalty and interest, and if permissible using the ITC that is to the petitioner's account.
[D] The petitioner shall file his Response with the details as aforesaid by 15.10.2026 with the second respondent.
Sd/- (B M SHYAM PRASAD) JUDGE AN/-