M/S. Sri Venkata Sambasiva Enterprises vs. The Deputy State Tax Officer

WP/36929/2024HC TelanganaGSTCNR HBHC01071921202410 January 2025Bench: SUJOY PAUL,G.RADHA RANI5 pages

For Respondent: sRl swARoop ooRlLLA Special Govt pleader, for State Tax

AI SummaryRemanded

Facts

The petitioner, M/s. Sri Venkata Sambasiva Enterprises, filed a writ petition challenging a notice issued by the Deputy State Tax Officer (Respondent No. 1) dated 01.07.2024 in Form GST REG-17, and an impugned order dated 11.07.2024 in Form GST REG-19. The petitioner sought to declare these actions as void, arbitrary, illegal, and without jurisdiction, and to restore their GST registration. The petitioner argued that the notice and order were violative of principles of natural justice and constitutional provisions. The respondents included the Deputy State Tax Officer, the Commissioner of State Tax, and the State of Telangana. The tax period is not explicitly stated, but the actions concern the cancellation of GST registration.

Held

The Court held that both the show-cause notice dated 01.07.2024 and the cancellation of registration order dated 11.07.2024 were deficient in factual details. The parties jointly agreed that these documents did not contain sufficient factual background regarding the alleged violation of the relevant provisions of the Act and Rules, making it difficult for the petitioner to put forth their defence. Consequently, the Court agreed to set aside the notice and the order. The reasoning was based on the mutual agreement of the parties regarding the inadequacy of the impugned documents. The ratio decidendi is that a show-cause notice and consequential order for cancellation of GST registration must contain sufficient factual particulars to enable the assessee to respond effectively, failing which they are liable to be set aside on grounds of violating natural justice. The Court disposed of the writ petition by setting aside the notice and order, reserving liberty to the respondents to proceed against the petitioner in accordance with law. No costs were awarded. No issue was expressly left undecided.

Key Issues

1. Whether the notice issued by Respondent No. 1 in Form GST REG-17 dated 01.07.2024 and the impugned order in Form GST REG-19 dated 11.07.2024 are void, arbitrary, illegal, without authority of law, without jurisdiction, and violative of the Principles of Natural Justice and Articles 14, 19(1)(g), 21, and 265 of the Constitution of India? Petitioner's Arguments: The petitioner contended that the show-cause notice and the cancellation order lacked specific factual details regarding the alleged violation of the relevant provisions of the Act and Rules. They argued that these documents were too sketchy and did not provide sufficient factual background for the petitioner to present an effective defence, thereby violating the principles of natural justice. Respondents' Arguments: The respondents did not record any specific arguments in the judgment. However, during the hearing, both parties jointly agreed that the impugned order and notice were deficient.

Sections Cited

GST REG-17, GST REG-19

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

t 3430I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY,THE TENTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE DR. JUSTICE G.RADHA RANI WRIT PETITION NO: 36929 OF 2024 Between: AND 1 M/s. Sri Venkata Sambasiva Enterprises, 3-51, Rajapur, Branch Post Office, lajapur, Mahabubnagar, Telangana, 509202 Represented By its Proprietor, Mr. Ronda Ashok Kumar Reddy, S/o. Venkateshwarlu Ri:Ody, R/o. 16, Narasingapadu, Narasingapadu, Sub-Health Centre Narasingapad'u, Palnadu, Andhra Pradesh, 52261 5. ...PETITIONER The Deputy State Tax Officer, Narayanpet Circle, Nalgonda Division, 1-4- 13211 and 1-4-1321NA, Sheshab Gutta, Near Govemment Hospital, Mahabubnagar, Telangana- 509001 The Commissioner of State Tax, C.T. Complex Opp. Gandhi Bhavan, M.J. Road, Hyderabad, Telangana 500 001 State of Telangana, Through Pdncipal Secretary to Govemment, Revenue Department (Commercial Tax), Hyderabad, Telangana ...RESPONDENTS 2 3 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 particulady one in the nature of a Writ of Mandamus, declaring the notice issued by Respondent No. 'l vide ref. no. 2A3607240017530 dated 01.O7.2024 in Form GST REG-17 and impugned order vide ref no 2A36O724O24413R in Form GST REG-19 dated 1ilo7l2o24 as being void, arbitrary, illegal, without authority of law and without jurisdiction, violative of the Principles of Natural Justice apart from being violative of Articles 1a, 19(1Xg), 21 and 265 of the Constitution of lndia, and to consequently set aside the notice and lmpugned Order by restoring the GST registration of the Petitioner and pass such further or other order(s) as this Hon'ble Court maydeem fit and proper in the circumstances of the case I I lA NO: 1 OF 2024 Petition undt-'r Section 151 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, ine High court may o" pr"rrlJ t" suspend the operation of rmpugned order vide aei zesaonqo2++tin in Form GST REG-19 dated 'l 1to7lzo24 in the interest of Justice and equity as otherwise, the Petitioner will be put to irreparable loss and hardship". Gounsel for the Petitioner: SRt. V. VEERESHAM counsel for the Respondents: sRl swARoop ooRlLLA Special Govt pleader for State Tax The Court made the following: ORDER / / / ,4 THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE DR. JUSTICE G.RADHA RANI WRIT PETITION No.36929 OF 2o24

ORDER: (per Hon'ble Justice Sujog Paul) Sri V.Veeresham, learned counsel for the petitioner and Sri Swaroop Oorilla, learned Special Government Pleader for State Tax for respondents.

With the consent, finallY heard.

During the course of hearing, learned counsel for the parties, fairly and jointly agreed that the impugned order of cancellation of registration dated 11.07.2024 and show-cause notice dated O't .O7.2024 (Annexure P.2) does not contain any factual details regarding violation of relevant provision of the Act and Rules. In other words, the show-cause notice and cancellation of registration order are too sketchy and does not provide suflicient factual background to the petitioner to put forth his defence. Thus, it is agreed that the notice and order may be set aside by reserving liberty to the respondents to proceed against the petitioner, in accordance with law. 4 . Accordingly, the Writ Petition is disposed of by reserving liberty as prayed for. No costs. t l // /, i i I I I I i I I I

2 ar Interlocutory applications, if any pending, shall also stand closed. //// P. CH. NAGABHUSHAMBA ASSISTANT REGISTRAR s CTION OFF]CER To, 1. 2. 3. 4.

5.6.

KKS I'g.P"pqty State Tax Officer, Narayanpet Circle, Natgonda Division, 1_4_ 1 321 1 and 1 -4-1 32t N A. srreshab Gutta:N;;; c;;;;ilent Hospitat, Mahabubnagar, Telangana- 5O9OO.l The Commissioner of State fu1 ^CI Complex Opp. Gandhi Bhavan, M.J. Road, Hyderabad, Telangana SOO OOt - "r'-" vrr' vr The Principar secretarv to G-overnment, Revenue Department (commerciar Tax), Hyderabad, Tetahgana One CC to SRt. V. VEERESHAM Advocate tOpUCl Two CCs to Soecial Govt Pleader for State Tax, High Court for the State of Telangana at Hyderabad. IOUTI- I s^' I rrvr I L Two CD Copies I I \ II ""@^

1 \ HIGH COURT DATED:1010112025 ORDER WP.No.36929 of 2024 DISPOSING OF THE WRIT PETITION WITHOUT COSTS 1Y\f- $TAIt Aq ?[25 c..{ c.C,, P elr W 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.