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2025 Supreme(Telangana) 312
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J SREENIVAS RAO, JJ.
M/s.Telangana Recycling Private Limited - Appellant
Versus
The State of Telangana - Respondent
Writ Petition No.15018 Of 2025
Decided On : 07-05-2025
Advocate Appeared:
For the Appellant : B KRISHNA REDDY
For the Respondent: Special Govt Pleader for State Tax
Important Points
Subject
Taxation - Goods and Services Tax
Act Referred
Headnote
(B) Principles of Natural Justice - The court reiterated that a show-cause notice must clearly state the charges to allow the person to defend themselves effectively. The absence of specific allegations renders the proceedings unfair and vitiated. (Paras 10, 11)
Facts of the case:
The petitioner’s GST registration was cancelled based on a show-cause notice alleging discrepancies in e-way bills without specific details. The petitioner contended that the notice was vague and lacked supporting documents.
Findings of Court:
The court found the show-cause notice vague and the cancellation order mechanical, lacking proper application of mind.
Issues: The main issues were whether the show-cause notice provided sufficient detail for the petitioner to respond and whether the cancellation order was justified.
Ratio Decidendi: The court ruled that the vague nature of the show-cause notice violated principles of natural justice, leading to an unjust cancellation of registration.
Result: Writ petition allowed; cancellation order set aside.
JUDGMENT :
(Surepalli Nanda, J.)
Heard Sri B. Krishna Reddy, learned counsel appearing on behalf of the petitioner and the learned Special Government Pleader for State Tax appearing on behalf of the respondents.
2. The petitioner approached the Court seeking prayer as under:
“….to issue Writ of Mandamus or any other appropriate Writ or Order or Direction declaring the action of the 2nd Respondent in passing the impugned Order dated 17.04.2025 in Ref.No. ZA360425045250W for cancellation of registration certificate of the petitioner vide GSTIN: 36AALCT2319K2Z1 along with the show cause notice dated 29.03.2025, as illegal, arbitrary, high handed, contrary to the provisions of the CGST Act, 2017 and in violation of principles of natural justice and set aside the same as null and void, and pass such other order orders as the Hon'ble Court deem fit and proper in the circumstances of the Case.”
3. The case of the petitioner, in brief, is that respondent No.2 issued a show-cause notice dated 29.03.2025 to the petitioner, alleging that the commodities mentioned in the e-way bills did not match with the registrations and that the functioning of the petitioner was in contravention to the GST Act and Rules. However, the notice was vague and failed to specify precise grounds or charges alleged against the petitioner. Despite the vague show- cause notice and the absence of supportive documents, respondent No.2 issued a cancellation order dated 17.04.2025, cancelling the petitioner’s GST registration vide GSTIN: 36AALCT2319K2Z1 with retrospective effect from 29.12.2024, without assigning any valid reason or affording a proper reasonable opportunity to respond. Aggrieved by the same, the petitioner has filed the present writ petition.
4. PERUSED THE RECORD
A) The impugned Show cause Notice for cancellation of Registration dated 29.03.2025 is extracted hereunder:
“FORM GST REG-17 [See Rule 22(1)] Reference No.: ZA360325152465J | |
To | Date: 29/03/2025 |
Registration Number (GSTIN/UIN): 36AALCT2319K2Z1 TELANGANA RECYCLING PRIVATE LIMITED 1-8-505/C/13/1, PRAKASH NAGAR, BEGUMPET, Hyderabad, Hyderabad, Telangana, 500016 Show Cause Notice for Cancellation of Registration Whereas on the basis of Information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons: 1. Others Remarks: In contraventions to the GST Act and Rules, Commodity mentioned in the Way bills are not matching with the registrations. You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice. You are hereby directed to appear before the undersigned authority on 03/ 04/ 2025 at 13:00. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits. Please note that your registration stands suspended with effect from 29/ 03/ 2025. Kindly refer the supportive document attached for case specific details. Place: Telangana Date: 29/03/2025 IVVALA HEMALATHA Deputy State Tax Officer BEGUMPET-1 Signature Not Verified.” | |
B) The order impugned dated 17.04.2025 is extracted hereunder:
“FORM GST REG-19 [See rule 22(3)] Reference Number: ZA360425045250W Date: 17/04/2025 To Name: TELANGANA RECYCLING PRIVATE LIMITED Address: 1-8-505/C/13/1, PRAKASH NAGAR, BEGUMPET, Hyderabad, Hyderabad, Telangana, 500016 GSTIN/UIN: 36AALCT2319K2Z1 Application Reference Number (ARN): AA3603250507192 Date: Order for Cancellation of Registration This has reference to show cause notice issued dated 29/03/2025. Whereas no reply to the show cause notice has been submitted; and whereas, the undersigned based on record avallable with this office is of the opinion that your registration is liable to be cancelled for following reason(s): 1. Others Remarks: In contraventions to the GST Act and Rules, Commodity mentioned in the Way bills are not matching with the registrations. Reasonable opportunity given for 7 wo |
