Anil Subhash Dalal Vs Superintendent of Central Tax and Central Excise (Karnataka High Court)
Summary : The Karnataka High Court, Dharwad Bench, in Anil Subhash Dalal Vs The Superintendent of Central Tax and Central Excise, allowed a writ petition challenging the cancellation of the petitioner’s GST registration for non-filing of returns. The petitioner, a civil contractor, challenged the cancellation order dated 18 September 2024, issued following a show cause notice dated 14 May 2024 under the provisions of Rule 22(1) and Rule 21A(2A) of the CGST Rules. The petitioner submitted that the notice proposing cancellation had been served on his accountant, who failed to inform him about the proceedings. The accountant subsequently died, and the petitioner was consequently unable to respond to the notice or file the required returns within the prescribed time. The registration was thereafter cancelled by the tax authority. Seeking relief under Articles 226 and 227 of the Constitution of India, the petitioner requested the Court to quash the cancellation order and direct restoration of his registration.
The petitioner relied on the Karnataka High Court’s earlier decision in Sri Girish K Vs State of Karnataka and Others, W.P. No. 8750/2026, decided on 8 September 2026, wherein the Court had quashed a similar GST registration cancellation and remitted the proceedings for reconsideration from the stage of notice. The Revenue, on the other hand, relied on Sri T.V. Basavaraju Vs Superintendent of Central Tax and Another, W.P. No. 21725/2024, decided on 28 August 2024, in which a Coordinate Bench had directed restoration of GST registration subject to the taxpayer filing outstanding returns and paying up-to-date tax within the stipulated period. After considering these precedents, the High Court adopted the approach of conditional restoration. The Court allowed the writ petition, quashed the cancellation order dated 18 September 2024 and directed the tax authorities to reinstate or restore the petitioner’s GST registration within four weeks, subject to the petitioner filing GST returns and paying up-to-date tax within four weeks from receipt of the order. The decision provides relief against registration cancellation while preserving the taxpayer’s obligation to regularise outstanding GST compliance requirements.
Cases Discussed
1. Sri Girish K Vs State of Karnataka and Others (Karnataka High Court); W.P. No. 8750/2026; 08/09/2026 — Relied upon by the petitioner. In similar circumstances, the Coordinate Bench allowed the writ petition, quashed the cancellation of GST registration and restored the proceedings to the concerned respondent for reconsideration from the stage of notice.
2. Sri T.V. Basavaraju Vs Superintendent of Central Tax and Another (Karnataka High Court); W.P. No. 21725/2024; 28/08/2024 — Relied upon by the Revenue. The Coordinate Bench quashed the GST registration cancellation and directed time-bound reinstatement and restoration, subject to filing pending returns and paying up-to-date tax within the prescribed period.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
Heard, Sri Sharad, learned counsel appearing on behalf of Sri Channabasavaraj S. Shettar, learned counsel appearing for the petitioner and Sri Girish S. Hulmani, learned Senior Counsel appearing for the sole respondent.
2. Since the matter is squarely covered by the judgment of Coordinate Bench of this Court in W.P.No.8570/2026 disposed on 08.09.2026, with the consent of learned counsel appearing for both the parties, the matter is taken up for final disposal.
3. This Writ Petition is filed seeking following reliefs:
“A) Issue a Writ of Certiorari setting aside the impugned orders passed by the Respondent authority dated: 18.09.2024 under Ref No.ZA290924076102F vide ANNEXURE-C,
b) And thereby issue writ of mandamus or any other direction to the Respondent authority to restore the GST registration of this Petitioner bearing GST No.GSTIN/UIN:29DRYPD2186J2ZZ and / or
c) Pass any order/direction as deemed fit by this Hon’ble Court in the ends of justice and equity.”
4. The main grievance of the petitioner is that his GST registration has been cancelled for want of filing returns for the concerned period in terms of notice issued, as per order dated 18.09.2024, exercising power under Rule 22(1)/ sub-rule (2A) of Rule 21A.
5. The contention of the petitioner for non-filing of the returns in time in terms of the notice is that, the notice dated 14.05.2024 directing the petitioner to show cause, as to why the registration shall not be cancelled was served on the Accountant was not intimated to him. So also, the accountant died in the interregnum and in terms of the same, notice of the GST registration came to be cancelled.
6. Learned counsel appearing for the petitioner relied on the judgment passed by the Coordinate Bench of this Court in the case of SRI.GIRISH.K VS. STATE OF KARNATAKA AND OTHERS in W.P.No.8750/2026 disposed of on 08.09.2026, wherein this Court, in similar circumstances, allowed the Writ Petition, quashed the cancellation of registration of GST and restored the proceedings to respondent No.2 therein, for reconsideration from the stage of Notice.
7. Sri Girish S. Hulmani, learned counsel appearing for the sole respondent – revenue, relied on the judgment of another Coordinate Bench of this Court in the case of SRI.T.V.BASAVARAJU VS. SUPERINTENDENT OF CENTRAL TAX AND ANOTHER in W.P.No.21725/2024 disposed of on 28.08.2024, wherein the Coordinate Bench though quashed the order of cancellation of GST registration, directed the respondent to reinstate and restore the GST registration of the petitioner in a time bound manner subject to the petitioner filing GST returns and paying up-to-date tax within the time frame fixed, with further directions.
8. In view afore, this Court proceeds to pass the following:
ORDER
i. The Writ Petition is allowed.
ii. The impugned order at Annexure-C dated 18.09.2024 passed by the respondent is hereby quashed.
iii. The respondents are directed to reinstate/restore the GST registration of the petitioner within four weeks from today, subject to the petitioner filing GST returns and paying up to date tax within the aforesaid period of four weeks from the date of receipt of a copy of this order.
