Facts of the Case

M/s Nandi Hospitality Services Pvt Ltd challenged the cancellation of its GST registration dated 01.12.2021 (bearing No.ZA2912210020747) and the subsequent dismissal of its appeal by the Appellate Authority on 23.05.2022, following an earlier show cause notice dated 02.11.2020. A further representation seeking a personal hearing was also refused. The petitioner approached the Karnataka High Court, which on 06.06.2022 granted an interim stay of both the cancellation order and the order-in-appeal. Acting on the strength of this interim protection, the petitioner filed its pending returns and continued paying taxes for over three years while the writ petition remained pending.

Issues Involved

  1. Whether continuation of an interim stay for an extended period, during which the petitioner complied by filing returns and paying tax, warrants a final direction restoring GST registration.
  2. What relief is appropriate once the practical effect of the interim order has already been to keep the petitioner's registration functioning.
  3. Whether continuing compliance conditions should be imposed as part of the final disposal.

Petitioner's Arguments

  • Submitted that pursuant to the interim order dated 06.06.2022, the petitioner had continued to file its GST returns and pay taxes, effectively functioning as a registered taxpayer.
  • Sought a final direction restoring GST registration and quashing the cancellation and appellate orders.

Respondent's Arguments

  • The respondents, represented before the Court, did not press for continued cancellation given that the petitioner had complied with filing obligations throughout the pendency of the interim stay.

Court Order / Findings

  • The Court noted that in pursuance of its 2022 interim order, the petitioner had filed returns and continued paying taxes, effectively meaning that GST registration had already been restored and running during the pendency of the petition.
  • Held that nothing further survived in the petition except to direct continuation of GST registration, subject to the condition that the petitioner shall continue to file returns and pay tax in accordance with law.
  • Disposed of the writ petition on these terms, without separately re-examining the merits of the original cancellation or appellate rejection.

Important Clarification

  • Where an interim stay of a GST registration cancellation has, over a prolonged pendency, been faithfully complied with by continued return-filing and tax payment, courts will often finally dispose of the petition simply by directing continuation of that de facto restored status, rather than reopening the merits.
  • This underscores the practical importance of interim relief in registration-cancellation writs: compliant conduct during the interim period can itself shape the final outcome.

Sections Involved

  • Section 29, CGST Act, 2017 – governs cancellation of GST registration.
  • Section 107, CGST Act, 2017 – governs the appellate remedy against cancellation orders, invoked and dismissed in this case.

Decision – In Favour of

Disposed of in favour of the assessee, with continuation of GST registration directed, subject to ongoing compliance with return-filing and tax-payment obligations.

Case Details

  • Court: High Court of Karnataka at Bengaluru
  • Case No.: Writ Petition No. 10906 of 2022 (T-RES)
  • Coram: Hon'ble Mr. Justice S.R. Krishna Kumar
  • Date of Order: 12 November 2025

Link to Download the Order

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