M/s. Motivity Labs Private Limited, Vs The Union of… — GST and Indirect Tax | Telangana HC (2025)

M/s. Motivity Labs Private Limited, Vs The Union of… — GST and Indirect Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

Impugned show cause notice dated 16.10.2024 set aside; liberty reserved to the Department to issue a fresh show cause notice to the petitioner in accordance with law; suspension of the petitioner's registration (part of the impugned notice) revoked; writ petition disposed of without costs; pending interlocutory applications closed.

Issue for consideration

Whether the show cause notice dated 16.10.2024 issued by Respondent No.3 for cancellation of the petitioner's GST registration (which also suspended the registration) should be set aside, with liberty to the Department to issue a fresh show cause notice in accordance with law.

Court's answer

On the learned Special Government Pleader for State Tax's submission that the impugned show cause notice dated 16.10.2024 is cryptic in nature (to which learned counsel for the petitioner had no objection), the Court set aside the impugned show cause notice dated 16.10.2024, reserving liberty to the Department to issue a fresh show cause notice to the petitioner in accordance with law.

Ratio / Principle

The suspension of the petitioner's registration, which formed part of the impugned show cause notice, stands revoked as a consequence of the notice being set aside.

Key takeaways

The writ petition is disposed of with no costs, and pending interlocutory applications, if any, stand closed.ratio¶38

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad, 27.02.2025 (Thursday) — Writ Petition No. 5633 of 2025; order per the Hon'ble the Acting Chief Justice Sujoy Paul, sitting with Smt. Justice Renu Kayara. M/s. Motivity Labs Private Limited (represented by its Director, Mr. Syed Ameeruddin) moved the Court under Article 226 of the Constitution seeking a writ of certiorari to quash a show cause notice dated 16.10.2024 vide Ref. No. 243610240300111 issued by Respondent No.3, the Deputy State Tax Officer, Madhapur III Circle, under the CGST Act 2017 and TGST Act 2017 for cancellation of its GST registration; the impugned notice also contained a suspension of the registration. With consent the matter was finally heard. The learned Special Government Pleader for State Tax, at the outset, fairly submitted that the impugned show cause notice was cryptic in nature and that it may be set aside with the Department issuing a fresh proper notice; learned counsel for the petitioner had no objection. HELD: (i) the impugned show cause notice dated 16.10.2024 is set aside with liberty reserved to the Department to issue a fresh show cause notice to the petitioner in accordance with law; (ii) the suspension of the petitioner's registration, being part of the impugned show cause notice, stands revoked; and (iii) the writ petition is disposed of without costs and pending interlocutory applications stand closed.

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HIGH COURT^{FORTHE STATEOF TELANGANA} AT HYDERABAD (SPecial Original^{Jurisdiction)}

THURSDAY, THE^{TWENWSEVENTHQAY OF FEBBUARY} TWO THOUSAND^{AND TWENTYFIVE}

PRESENT

THE HONOURABLE^{THE ACTING CHIEF JUSTICE SUJOYPAUL} AND THE HONOURABLE^{SMT JUSTICERENU KAYARA}

RIT PETI NO:5633 F 25

Between:

M/s. Motivity Labs^{PrivateLimitgd, Dallas..Center6tn Floor'83/'1Plot No A'} Knowledoe citv. nai'^{oiL'r"gr-" S;;ll'A F;lly' Hvderabad' Telangana500032} Hepresett"d bi^{its Director,Mr' Syed Ameeruddrn}

...PETITIONER

ANO

1 The Union of lndia, $inistry^{of Finance, Department of Revenue' 15' -.} $Ifd;,1ffi;ii6;:Nil^{D;rhi- i iobot ii"pi"'entedbv its secretary'New} Delhi

The State^{of Tglangana, Department of Revenue (Cgmmercial Tax)'} - $;Hi;ii"i'Hvteribad. Represented bv its secretarv

The Deputv State^{Tax officer,Ma-dhap^ur^lllCircle4'h Floor Gagan Vihar} Compleji^{Nampally HyderabadI s 5uuuul}

The Commisgigner^{oJ State Goodsand Services Tax' NarlpallyHyderabad} 5000Q,t

...BESPONDENTS

Petition under^{Article226 of lhe Constitutionof India praying that in the} circumstances^{statedan the affidavit fited therewith' the Hlgh QQurt may be} pleased to issue a^Writ, Qrder^{or Direction,more particularly in tltg nature of a} Writ of Certiorari,^{callingfor records and quashing the Show cause noticedt'} 16t1}t2024 vide^{Ref. No. 243610240300111issuedby the RespondentNo3} under the^{prgvisions of CGST,2017 and TGST' 2017'}

lA NO: 1 OF 2025

Petition under section 15 r cpc praying that in the circurnstances stated in the affidavit fired in support of the petition, the High court may be preased to direct the Respon,Jent No.3 to qonsidef the reply of the F,etitioner dated 18.10.2024 and 30 O'r 2OZS.

Counsgf for the Petitioner: SRI KAILASH NATH p S q

Counse! for the Respondent No.1: SBt B. MUKHERJEE. REPRESENTS $Rt cADt PRAVEEN KUMAR Oy. S[LlCrron deru.br rruora

Counsef for the Respondllt-rygs.1 t9 4: SB! $WABO9F OOR|LLA, SPCIAL GQVERNMENT PLEADER FOR STATE TAX

The Court mtde the foflowing: ORDER

I t

7

THE TION'BLE THE ACTING^{CHIEF JUSTICE SUJOY PAUL} AND THE HON'BLE SMT. .TUSTICE^{RENI'I(A YARA}

WRIT PETITION No.5633 of^2o25

ORDER^(Perthe Hon'ble^{ttle Acting Chief Justice SuioA Paul):}

\

Sri Kailash Nath^{P.S.S., learned counselforthe} petitioner; Sri B. Mukherjee,^{learned counselrepresents Sri Gadi} Praveen Kumar, learned^{Deputy Solicitor Generalof India,for} respondent No.l and^{Sri SwaroopOorilla, learned Special} Government Pleader^{for State Tax, for respondent Nos'2 to 4'}

With the consent,^{frnallYheard.}

tearned Special Government^{Pleader for State Tax, at the} outset, fairly submits^{that the impugned show cause notice for} cancellation of registration^{dated16.10 '2024 (Annexure-P1) is} cryptic in nature^{and therefore, the said notice may be set aside} and Department will^{issue a fresh proper notice to the petitioner'} With this direction, this^{Writ Petition may be disposed of'}

Learned counsel^{for the petitionerhas no objection'}

Accordingly, the^{impugnedshow cause noticedated} L6.1O.2O24^is set^{aside by reservingliberty to the Departmentto} issue a fresh^{show cause notice to the petitionerin accordance} with law. Needless^{toemphasizethat thesuspension of}

2

petitioner's regis tration which is part of the impugnr:d show

cause notice also stands revoked.

6 Accordingly, the Writ petition is disposed of. I'Lt costs.

Interlooli<;l-y applications, if any pending, sh,ajl also

stand.closed.

SD/-K. SREE RAMA MURTHY ASSISTANT REGISTRAR I sfi ON OFFICER

//TRUE COPY//

To, 1 The Secretary^-l'he Union^{of lndia,t\tlinistryof FinanceDepartrnent of} Revenue, 15,'safdarjung^{Road,NewDelhi - 1 '1000'1New Delhi}

2 The Secretary, I he State of^{Telangana, Department of} Revenue (Commercial Tax ). Secretariat, Hvderabad.

J the Deputy State Tax offlcer, Madhapur lll Circle^{4th Floor Gagan Vihar} Complex Nampally Hyderabad TS 500001

4 The bommissic,ner of State Goods^{and Services Tax, Nampallytlyderabad} s00001

5 O.,ne CQ to Sri Kailash Nath P, S.^S. Advpcate IOPUCI 0 One CC to Sri Gadi Praveen Kumar^Dy. $olicitor Gen.^{o[ lndia} IQPUQ] 7 two CC to The Special GP^fqr State^{Iax, HighCourt for the State of} Tirlangana, at l-lyderabad[OUT]

E Two CD^Copies. TJ BS t &

HIGH COURT

DATED:2710212025

ORDER

WP.No.5633 of 2025

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DISPOSING OF THE WRIT^PETITION WITHOUT^COSTS (t' @^oril"'-