Facts of the Case

The petitioner, Mohd Sidiq, proprietor of M/s Mohd Sadiq Contractor, GSTIN 36EESP8378B1ZP, Jangaon, Telangana, filed this writ petition before the Telangana High Court against the Joint Commissioner (Appeals-1), GST and Central Tax, and the Superintendent of Central Tax, Jangaon, challenging non-disposal of an appeal filed on 28.10.2023 and the cancellation of his GST registration by an order dated 23.06.2023, effective from 24.03.2020. The registration was cancelled on the specific ground that the petitioner was an established fake entity with no genuine business activity. The petitioner also sought interim suspension of the cancellation order and revival of the GST registration portal pending disposal of the writ petition.

Issues Involved

  1. Whether the writ petition, filed challenging non-disposal of a Section 107 appeal lodged only nine days earlier, was premature.
  2. Whether the petitioner, having belatedly invoked the revocation and appellate remedies, was entitled to interim revival of the GST registration pending the appeal.

Petitioner's Arguments

  • Non-disposal of the appeal filed on 28.10.2023 within a short span was illegal, arbitrary, and violated natural justice and the provisions of the GST Act, 2017.
  • The cancellation of registration was arbitrary and contrary to law; interim suspension of the cancellation order and revival of the registration portal were necessary to prevent severe loss and hardship pending disposal of the writ petition.

Respondent's Arguments

  • The petitioner's existence was only for availing input tax credit benefits and passing on ITC credits to other entities without any actual supply being made, and no genuine business was conducted at the registered premises.
  • The petitioner failed to timely seek revocation of the cancellation, failed to file the Section 107 appeal within three months of cancellation (or the further condonable 30 days), and filed the appeal only on 28.10.2023, well beyond the prescribed period, before approaching the High Court within 10 days of filing that appeal.

Court Order/Findings

  • Since the appeal itself was filed on 28.10.2023 and the writ petition was filed on 06.11.2023 — within less than 10 days — the Court held that the writ petition was too premature to be entertained for the relief sought.
  • Having invoked the statutory appellate remedy under Section 107 of the CGST Act, the Appellate Authority was directed to look into the matter and decide it strictly in accordance with the provisions of law, including exercising its power to condone delay beyond the period of limitation.
  • The writ petition was disposed of without costs, with no interim relief granted on the registration cancellation.

Important Clarification

A writ petition complaining of "non-disposal" of a statutory GST appeal, filed within days of lodging that very appeal, will ordinarily be treated as premature; the High Court will decline to intervene at that stage and will instead direct the appellate authority to decide the appeal in accordance with law — including exercising its statutory power to condone delay in filing the appeal — without granting interim relief against the underlying registration cancellation.

Sections Involved

  • Section 107, CGST Act, 2017 — provides for appeal to the Appellate Authority, including the power to condone delay in filing the appeal within a further limited period.
  • Section 29/30, CGST Act, 2017 — governs cancellation of registration and the procedure for its revocation.

Decision – In Favour of

Disposed of as premature, without any finding on the merits of the registration cancellation — the Department's cancellation order stands undisturbed for the present, and the immediate outcome favours the Department procedurally, though the petitioner retains liberty to pursue the statutory appeal under Section 107.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: Writ Petition No. 31458 of 2023
  • CNR: Not available
  • Coram: Justice P. Sam Koshy and Justice N. Tukaramji
  • Decision Date: 15 November 2023
  • Disposal Nature: Disposed of as premature; liberty to pursue Section 107 appeal

Link to Download the Order

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