Sunrise Trading & Co. Vs Superintendent of Central Tax (Telangana High Court)
Telangana High Court Permits Taxpayer to Seek Revocation of GST Registration Cancelled on Allegation of Fraud and Suppression
Summary: The Telangana High Court dealt with a writ petition filed by M/s. Sunrise Trading & Co. challenging cancellation of its GST registration bearing GSTIN 36AFOFS7578G1Z6 through Form GST REG-19 dated 10.06.2026 on the allegation that the registration had been obtained by means of fraud, wilful misstatement or suppression of facts. The petitioner submitted that the cancellation was connected with allegations concerning invalid or suspicious Input Tax Credit transactions during FY 2025-26, particularly because the registration certificates of 9 out of 10 suppliers had been cancelled. The Department submitted that the apparent reason for cancellation was the allegation that the GST registration itself had been obtained through fraud, wilful misstatement or suppression of facts. The High Court did not adjudicate upon the merits of these allegations or determine the validity of the ITC. Instead, it granted liberty to the petitioner to approach the competent authority within two weeks for revocation of cancellation of GST registration. The application could initially be submitted online and, if not accepted for technical reasons, could be submitted physically. The competent authority was directed to entertain the application and take a decision in accordance with law within three weeks thereafter. The writ petition was disposed of without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Mr. M. Uma Shankar, learned counsel appears for Mr. V. Veeresham, learned counsel for petitioner.
Mr. Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs (CBIC), appears for respondent Nos.1 and 2.
2. The Goods and Services Tax (GST) registration certificate of the petitioner bearing No.36AFOFS7578G1Z6 was cancelled vide impugned order passed in Form GST REG-19 dated 10.06.2026 on the ground that the registration was obtained by means of fraud, wilful misstatement or suppression of facts. The petitioner has preferred the instant writ petition for revocation of cancellation of GST registration.
3. Learned counsel for the petitioner submits that the petitioner’s GST registration was cancelled on the allegation that the input tax credit availed by the taxpayer had become invalid and appears to be suspicious transactions made during the financial year 2025-26 as registration certificates of 9 suppliers, out of 10 suppliers, were cancelled.
4. Learned counsel for the Department submits that the apparent reason for cancellation of petitioner’s GST registration was that the registration was obtained by means of fraud, wilful misstatement or suppression of facts.
5. Having regard to the aforesaid facts and circumstances, we are inclined to allow liberty to the petitioner to approach the competent authority within a period of two weeks from today for submission of application for revocation of cancellation of GST registration online and if it is not being accepted for any technical reasons, then to submit it in physical form. The competent authority would entertain it and take a decision thereon in accordance with law within a period of three weeks thereafter.
6. The instant writ petition is accordingly disposed of. There shall be no order as to costs.
Miscellaneous applications pending, if any, shall stand closed.
