Sholay Bar & Restaurant Vs Deputy State Tax Officer (Telangana High Court)
Telangana High Court Allows Fresh Application for Revocation of GST Registration Cancelled for Non-Updation of Bank Details
Summary: The petitioner’s GST registration bearing No. 36ABTFM2510M1ZW was cancelled through an Order for Cancellation of Registration in Form GST REG-19 dated 15.09.2023, with the stated reason being “Rule 21(d) – person violates the provision of Rule 10A (Bank details)”. The petitioner’s appeal against the cancellation order was rejected on 26.03.2026 on the ground that it had been filed beyond the prescribed limitation period. Aggrieved by the rejection, the petitioner approached the Telangana High Court.
The petitioner submitted that the firm M/s. Lucky Restaurant and Bar had been taken over by M/s. Sholey Bar and Restaurant and that its licence was being renewed from time to time. According to the petitioner, after the takeover, its accountant failed to update the bank account information on the GST portal, resulting in cancellation of the GST registration. Since the appeal was also rejected on limitation, the petitioner sought an opportunity to approach the competent authority for revocation of the cancellation.
The learned Special Government Pleader for State Tax submitted that the apparent reason for cancellation was the non-furnishing of bank account details on the portal.
Having regard to the facts and circumstances, the Telangana High Court granted liberty to the petitioner to approach the competent authority within two weeks for submission of an online application for revocation of the cancellation of GST registration. If the application was not accepted for technical reasons, the petitioner was permitted to submit it in physical form. 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 accordingly disposed of, with no order as to costs. Pending miscellaneous applications, if any, were directed to stand closed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard Mr. V.Ganesh Bhujanga Rao, learned counsel appearing for the petitioner in virtual mode and Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax, appearing for respondents No.1 to 3.
2. The Goods and Services Tax (GST) registration of the petitioner bearing No.36ABTFM2510M1ZW was cancelled vide Order for Cancellation of Registration passed in Form GST REG- 19 dated 15.09.2023 stating the reason as “Rule 21(d) – person violates the provision of Rule 10A (Bank details)”. The appeal preferred by the petitioner against the said order was rejected on 26.03.2026 on the ground that the same was filed beyond the prescribed period of limitation. Aggrieved by the same, petitioner has filed the instant Writ Petition.
3. Learned counsel for the petitioner submits that the firm by name M/s. Lucky Restaurant and Bar was taken over by the petitioner – M/s. Sholey Bar and Restaurant, and the petitioner’s licence is being renewed from time to time. He submits that after the said takeover, the accountant of the petitioner has failed to update the information with regard to the bank account in the portal, which resulted in cancellation of GST registration. The appeal filed by the petitioner was also rejected on the ground of limitation. Therefore, the petitioner prays that respondent No.1 may be directed to give an opportunity to the petitioner and revoke the order of cancellation of GST registration.
4. Learned Special Government Pleader for State Tax submits that the apparent reason for cancellation of GST registration of the petitioner was on account of non-furnishing of bank account details in the portal.
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.
