Diya Distributors Vs The Deputy State Tax Officer — GST and Indirect Tax | Telangana HC (2026)

Diya Distributors Vs The Deputy State Tax Officer — GST and Indirect Tax | Telangana HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of without costs: petitioner to approach the competent authority within one week with a physical-form application for revocation of the cancelled GST registration, which will be entertained and decided in accordance with law within three weeks thereafter; pending miscellaneous applications stand closed.

Issue for consideration

Whether, although the GST portal does not permit submission of a revocation application beyond the prescribed time limit, Respondent No. 1 can be directed to manually entertain the petitioner's application for revocation of the cancelled GST registration certificate and decide it in accordance with law.

Court's answer

If the petitioner approaches the competent authority within one week from today for submission of an application for revocation of cancellation of the GST registration certificate in physical form, the competent authority would entertain such application.

Ratio / Principle

Upon entertaining the application, the competent authority would take a decision thereupon in accordance with law within a period of three weeks thereafter.

Detailed headnote1 paragraphs

GST registration cancellation — revocation application time-barred on common portal — manual entertaining directed. High Court for the State of Telangana (Special Original Jurisdiction), Writ Petition No. 2681 of 2026 (Diya Distributors v. Deputy State Tax Officer and others), order dated 02.02.2026 (Coram: the Honourable Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin). The petitioner's GST registration bearing GSTIN 36DHHPA7385F1Z8 was cancelled by Respondent No. 1 vide Form GST REG-19 dated 23.03.2024 on the ground of filing NIL return, including retrospective cancellation from 31.03.2021; the petitioner, having entrusted GST correspondence to a tax professional who never conveyed the show cause notice or cancellation proceedings, learnt of the cancellation only when its purchasing dealers were denied input tax credit owing to the retrospective cancellation. As the GST portal would not accept a revocation application beyond the prescribed time limit, the Court disposed of the writ petition directing that if the petitioner approached the competent authority within one week with an application for revocation in physical form, it would be entertained and a decision taken thereupon in accordance with law within three weeks thereafter; no order as to costs was made and pending miscellaneous applications were closed. The pleas that the cancellation was ultra vires Section 29 of the Central Goods and Services Tax Act, 2017 and contrary to Articles 14, 19(1)(g), 21 and 265 of the Constitution, and the prayers for quashing and restoration of registration, were not independently adjudicated.

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IN THE HIGH COURT FOR THE STATE OF^TELANGANA

(Special Original Jurisdiction)

MONDAY,THE SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE THE CHIEF JUSTICE SRI APARESH^KUMARSINGH ANI)

THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN

WRIT PETITION NO: 2681 OF 2026

Between:

DIYA DISTRIBUTORS, Represented^bY its proprietor Miss. SHIKSHA AGARWAL, Aged about 25 Years, Occ. Business, 11-6-27l1lB, Sunship Compound, Balanagar, Hyderabad^- 500037.

...PETITIONER

AND

1 The Deputy State Tax Officer, Office of the Asst. Commissioner^(ST), _ Fatehnagai Circle, 2nd Floor, South Wing, Gaganvihar^{Building, Opp Gandhi} Bhavan, Nampally, Hyderabad - 500001.

2 The Commissioner of State Tax, State of Telagnana^{CommercialTaxes} Complex, M J Road, Opposite Gandhi Bhavan,^{Nampally, Hyderabad.}

3 The State of Telagnana, Represented by its Principle^{Secretary to} Government, Revenue CTD, Secreteriate,^Hyderabad.

...RESPONDENTS

Petition under Article 226 of the Constitution of^{lndiaprayingthat in the} circumstances stated in the affidavit^{filedtherewith, the High Court maybe} pleased to a. lssue a Writ of Certiorari or any other appropriate^Writ,Orderor Direction^quashing the Cancellation^{Order dated 23.03.2024vide Reference No.} 2A36O324054294N^passed by the^{Respondent No.1, cancellingthe GST} Registration of the Petitioner^{bearing GSTIN 36DHHPA7385F1Z8, includingthe} retrospective cancellation from 31/03/2021 ,^{b. Declarethat the impugned} cancellation of GST Registration^{is ultra vires Section29 of the CentralGoods and} Services Tax Act, 2017 and^{is illegal,arbitrary, unconstitutional and void,being} contrary to Articles 14, 19(1Xg),²¹ and^{265 of the Constitutionof lndia, c. Direct} restoration of GST Registration^{forthwithandpermit filing of pending returns,and}

d Pass such^{other order or ordersas this HonourableCourt deemsfit in the} interests^of .lust^ce

IANO:1O F 2026

Petition under^{Section 151 CPCpraying that in the circumstances statedin} the affidavit^{filt:d in support of the petition, the HighCourt may be pleasedto} dispense^{with :he filing of original/ certified copy of the order dl' 231O312024 in} Reference^{No. 2A3602324054294Non the file of the tespondent's office'}

IA NO: 20F²⁰²⁶

Petition :nder^{Section151 CPC praying thatin the circumstancesstated in} the affidavit^{fil€din supportof the petition'the HighCourtmay be pleased to stay} all further^{pro<;eedings includingany recovery' pursuantto the cancellationof} order dt 23ll3t2)24vide^{ReferenceNo2A3602324054294Nand also not to take} any coercive^{steps against the petitionertill pending disposal of Writ petition'}

Counsel for^{the Petitioner:SRI GAJANAND CHAKRAVARTHYREPRESENTING} SRI UPADHYAY^RAGHAVENDER

Counsel for^{the Respondents No 1 & 2 : SRI SWAROOPOORILLA'} SPECIAL GP^FORSTATETAX.

Counsel for^{the Respondent No 3 : GP FOR REVENUE}

The Court made^{the following:ORDER}

IN THE HIGH COURT FOR^{THE STATE OF TELANGANA}

AT HYDERABAD

THE HON' E THE CHTEI.'JUSTICII SRI At,AIIESI{^{KTJMARSI N(; I.I}

ANI)

THE HON' SRI JUSTICE G TUDDIN

WRIT PETITION No.2 681 of 2026

Dated: 02.02.2026

Iletween:

Diya Distributors

...Petitioner

antl

'Ihe Deputy State'l'ax Oftrcer, Office o['the Asst. Cornmissioner^{(S1'), Fatehnagar Circlc,} 2"d Floor, South Wing, Gaganvihar Building, Opp. Gandhi Bhavan, Nampally, [{yderabad - 500 001, and2 others.

... Respondents

ORDER:

I-earned counsel Sri Gajanand Chakravarthy,^{rcprcsentingIcarned}

counsel Sri Upadhyay Raghavender,^{appears lbr the pctitioner.}

Sri Swaroop Oorilla, learned Special Government^{Pleadcr for}

State Tax, appears for the respondents.

The Goods and Services Tax^{(GST)registration certificateof the} petitioner bearing No.36DHHPA7385Fl28^{\4/as cancelled vidc} irnpugned order passed in Form GST^{REG-19 dated 23.03.2024on the}

2

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ground of liling NII- return. l'hereafter, the petitioner has filed the instartt 'Nrit petition for revocation of cancellation of GST registration ccrt i li ca te .

Learrled counsel fbr the petitioncr subrnits that all outstanding dues, if an1. rvould be paid.'fhe petitioner had entrusted all GST' corru-spondetrcc to its tar proflessiorral/consultant rvho did not inlorrn thc pctitiorrcr regarding the shou cause notice or the cancellatiorr proccedings altd the petitioner carne to know of the cancellation onlr s'hett its purchasing dealcrs recerrtly informed that due to retrospcctiyc cancellation. rhcir Input^'fax Crcdit is bcing denied and they arc being cornpelled to pay the GS]- again resulting in dernands being raised on the pctiti,.rner fbr rcfirnd of GS-r' arrcacry paid. Though the petitioner has sought t<l filc an application for revocation of cancellation of GSI' rcgistrati<>rl ccrtif,lcatc but the GS-l' portal does not perrnit the petitioncr as being llevond the tirne lirrrit prescribecl for submission. Therefore, the petitiorrer pra-vs that respondent No.l rnay be directed to enterlain the pctitioner's application manuallv and take a decision thereupon in accordance with law.

4- Leirtted Special Government Pleader for State Tax submits that if the petitioner is directed to approach respondent No.l/competent

J

authority, its^{application can be entertained manuallyas the GSTporlal} does not permit^{submissionof apptication beyondthe prescribed tirne} lirnit. It is also^{subrnittedthat the competent authoritl"ivouldconsider} the application in^{accordanccrvith larv.}

Having regard to^{the aforesaid facts and circumstances.if the} petitioner approaches the^{competent authority r'vithina pcriod ot'one} u,eek ttonr todal' lor^{submission o[' applicationfbr revocationof} cancellation ol' GS't'^{registration certificate in ph1'sical form-tl-re} competeltt authority^{wouldentertain it andtake a decision thereuponin} accordance rvith^{larv r,vithin a period of threervecksthereatter.}

The instant writ^{petitionis accordingly disposed of' There shall} be no ordcr as to^costs.

Miscellaneous applications^{pencling. ilany, shallstand closcd}

SD/^{-K. MADHA} AS TANT REG

/TRUE COPY/ ON OFFICER

To,

The Deputy^{State Tax oJficer,} ^office^{of the Asst. Commissioner(ST),} Fatehnas^{a,. circr!,' ino-Fiil,' g;l!{ryir.rglbiginuinrr Bu i ld ing, opp Gandh i} bh;r;;,"Nampally,^{HYderabad- 5oooo1}

The Commissioner^{of State.Tat State of TelagnanaCommercialTaxes} Complex, U I^{fi"'rOlbpp".ii. G;;hi A6rrin]Nampally, Hyderabad'}

The Principle^secretqry 1o^{Government, Revenue cTD,Stateof Telagnana'} Secreteriate,^HYderabad'

4.oneCCtoSRl.UPADHYAYRAGHAVENDER,Advocate[oPUC]

Two,CCs to Gp^{FOR REVENUE,High cpurtfor the Stateof Telangana at} Hyderabad. [OUT]

6 Two CCs to SPECIAL GP FOR SfATE TAX, High'Court for the State of Telangana at Hyderabad. [OUT]

Two C[) Copies DAN

tls

'd+-

HIGH COI.'RT

DATED i01'.10212026

ORDER

WP.No.2681^{of 2026}

STAIE
2 $ fEB 202[
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DISPOSIING^{OF THE WRIT PETITION}

WITHOUT COSTS

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