M/S. J.J. Traders vs. The Union Of INDIA

WP/18471/2025HC TelanganaGSTCNR HBHC01036115202502 July 2025Bench: SUJOY PAUL,RENUKA YARA3 pages

AI SummaryRemanded

Facts

The petitioner, M/s J.J. Traders, filed a writ petition challenging the order dated 22-08-2024, passed by the Deputy State Tax Officer, Sangareddy - I District, cancelling its GST registration. The cancellation was based on the ground that the business had not commenced within six months from the date of registration. The petitioner contended that this action was illegal, arbitrary, and in violation of principles of natural justice, as the authority did not verify records and failed to consider that the petitioner had been filing GST returns until March 2024. The petition sought to set aside the cancellation order and enable the petitioner to file monthly GST returns.

Held

The High Court, in view of a consensus arrived at between the parties, disposed of the writ petition. The petitioner was granted liberty to file an application within seven days from the date of the order, along with a copy of the order, before the competent authority. The competent authority was directed to consider and decide such application in accordance with the law on merits within two weeks of receiving it, by passing a speaking order. The outcome of the application was to be communicated to the petitioner. The Court explicitly stated that it had not expressed any opinion on the merits of the case. No costs were awarded.

Key Issues

1. Whether the cancellation of GST registration by the Deputy State Tax Officer, Sangareddy - I District, bearing reference No. 24360824063571E dated 22-08-2024, was illegal, arbitrary, and in violation of the principles of natural justice, specifically concerning the alleged failure to commence business within six months of registration, without verifying records and considering the petitioner's filing of GST returns until March 2024, thereby contravening relevant provisions of the GST Act and Rules. Contentions of the Petitioner: The petitioner argued that the cancellation order was passed without proper verification of records and without considering the fact that they had been filing GST returns until March 2024. They asserted that the action was arbitrary and violated the principles of natural justice. The petitioner sought a writ of Mandamus to declare the order illegal and to set it aside, along with a direction to enable them to file monthly GST returns. Contentions of the Respondents: The judgment does not record any specific arguments presented by the respondents. However, the impugned order was passed by the Deputy State Tax Officer, Sangareddy - I District.

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) WEDNESDAY, THE SECOND DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUS.TICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 18471 OF 2025 Between: M/sJJ.TRADERS,RepresentedbyitsProprietor'sriEmmanuelBabu Cf,i.grri S/o. Chiruguri iadson, Aged about 58 Year,s, Occ' ,Busine-ss'- R/o Plot []o.25. Opposife H.P Filling Station lsnapur X Road' sangared0y' Patancheru. ...PETITIONER AND l.TheUnionoflndia,RepbyitsSecretary,MinistryofFinance,SouthBlock, Secretariat, New Delhi. 2. ih; A'pdi;teloint commissioner sT secunderabad Division, commercial Tax Dbf artment, Government of Telangana. . -. 3. The Defuty State Tax Officer, Sangareddy - I District ...RES'ONDENTS 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, order or direction more particularly in the nature of writ of Mandamus to declare the illegal action of the respondents more particularly respondent No.3 herein in passing the impugned order of cancellation of GST registration bearing reference No.2436082406357',I E dated 22-08-2024, against the petitioner under the pretext of not commencing the business within 6 months from the date of registration without verifying the records and without considering the fact of petitioner filing GST returns until \Aarch-Zo24, as illegal, arbitrary, in violation of principles of natural Justice, without application of mind and to consequently set aside the impugned order of cancellation of GST registration bearing reference No.2A360824053571E daled 22-08-2024 passed against the Petitioner including the direction to the respondents to enable the Petitioner to file the monthlY GST Returns. I-\,ie?! 2 91 '. 4 . In vieq, of consensus arrived at, this Writ Petition is disposed of bv reserving libertl' to the petitior-rer to frle such application within seven days along with a copy of this order before the competent authority. In turn, the competent authoritv shall con sider and decide such application in accordance r,r,ith law on merits u,ithin two weeks therefrom by passing a speaking order. Tl-re outcome shall be communicated to the petitioner. It is made clear lhat this Court has not expressed any oprnion on merits ol the case. No costs. Interlocutory applications, if any pending, shall also stand clo sed. S A.H.S. GOWRI SHANKAR S ISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To PSK 1. The Secretary, Union of lndia, I\/inistry of Finan New Delhi. outh Block, Secretariat, 2. The Appellate Joint Commissioner ST Secunderabad Division, Commercial Tax Department, Government of Telangana. 3. The Deputy State Tax Officer, Sangareddy - I District. 4. One CC to SRI KATIKA RAVINDER REDDY, A.dvocate [OPUC] 5 One CC to SRI A S.VASUDEVAN, SC FOR CENTRAL GOVT IOPUC] 6 One CC to SRI SWAROOP OORILLA, SPL GP [OPUC] 7. Two CD Copies GJP o HIGH COURT DATED:0210712025

WP.No.18471 of 2025 J 0 4 BIT 2025 'i.,1 C) :. ri .a'.- ,/ i, -,/ DISPOSING OF THE WRIT PETITION WITHOUT COSTS t q { 1'.- i I I I i i i I i I : I I I i : 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.