- 1 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 12TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 104287 OF 2025 (T-RES) BETWEEN: SRI. AYYAPPA PROPRIETOR, S/O OF NARENDRA RATHOD, AGED ABOUT 30 YEARS, SHOP NO.17, APMC YARD, GURUMITKAL, YADGIR-585215, PROPRIETOR OF SRI LAXMI NARASIMHA SWAMY TRADERS. …PETITIONER (BY SRIYUTHS. RAMA P.V, SHASHANK S. HEGDE, SHREEHARI KUTSA AND ABHIJIT S. BAPU, ADVOCATES) AND: 1. THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE, YADGIR RANGE, H.NO.5-1-41/8, HASNAIN MANZIL, OPP. OMKAR FAROOQ MASJID, MILAT NAGAR, YADGIR-585202. 2. ADDITIONAL COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), NO.71, CLUB ROAD, BELAGAVI-590009. 3. COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), COMMISSIONERATE BELAGAVI, GULBARGA DIVISION, YADGIR-590001, (PROPER JURISDICTIONAL OFFICE) GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench Date: 2025.08.14 11:05:00 +0530 - 2 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 4. COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), BENGALURU, VANIJYA TERIGE KARYALAYA, KALIDASA ROAD, GANDHI NAGARA, BENGALURU-560009. …RESPONDENTS (BY SRIYUTHS. GIRISH S.HULMANI, ADVOCATE FOR R1 TO R3; SHARAD V. MAGADUM, AGA FOR R4) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A. ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT QUASHING THE SHOW CAUSE NOTICE UNDER SECTION 107 (11) DATED 08/11/2022 BEARING REF.NO.ZA291122025651W ISSUED BY RESPONDENT NO.1 AND ENCLOSED AS ANNEXURE B. B) ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT QUASHING THE ORDER DATED 09/02/2023 BEARING NO.ZA2902230454060 ISSUED BY THE RESPONDENT NO. 1 AND ENCLOSED ANNEXURE C. C. ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT QUASHING THE ORDER-IN-APPEAL U/S 107(11) DATED 18/01/2024 BEARING NO.129/2023/BM/GST ISSUED BY THE RESPONDENT NO. 2 AND ENCLOSED AS ANNEXURE-E AND ETC., THIS PETITION, COMING ON FOR PRILIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner is before this Court seeking for the following reliefs: A. Issue a writ of certiorari or any other suitable writ quashing the Show Cause Notice under section 107 (11) dated 08/11/2022 bearing - 3 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 Ref.No.ZA291122025651W issued by respondent No.1 and enclosed as Annexure B. B. Issue a writ of certiorari or any other suitable writ quashing the order dated 09/02/2023 bearing No.ZA2902230454060 issued by the respondent no. 1 and enclosed Annexure C. C. Issue a writ of certiorari or any other suitable writ quashing the Order-In-Appeal u/s 107(11) dated 18/01/2024 bearing No.129/2023/BM/GST issued by the Respondent No. 2 and enclosed as Annexure-E. D. And pass such other orders as this Hon;ble Court deems fit and proper in the interest of justice and equity. 2. Respondent No.1, having issued show cause notice on 08.11.2022, calling upon the petitioner to show cause as to why the GST registration of the petitioner ought not to be cancelled on account of non-filing of returns for a period of 6 months, rejected the reply and vide order dated 09.02.2023, cancelled the registration with effect from 08.11.2022, being the date of the show cause notice. An appeal having been filed by the petitioner, Respondent No.2, vide order dated 18.01.2024, dismissed the appeal. It is challenging both the orders that the petitioner is before this Court. - 4 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 3. Learned counsel for the petitioner submits that, no business having occurred, the petitioner could not file his returns. The petitioner intends to go on with the business, and a categorical submission is made that, henceforth the returns would be filed on time, including the payment of necessary taxes which are due thereon. 4. Though Sri. G. S. Hulmani, learned counsel for respondent Nos.1 to 3, vehemently opposes the said submission, I am of the considered opinion that, when an assessee intends to carry on the business and it is only on account of the business not being conducted that the returns have not been filed, the respondent authorities ought not to cancel the registration on account of non-filing of returns unless there is a clear and categorical allegation made that, despite carrying on the business returns have not been filed. There being no such allegation against the petitioner, I am of the opinion that the petitioner ought to be - 5 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 continued with the business by restoration of the cancelled registration. 5. In that view of the matter, I pass the following: ORDER I. Writ Petition is allowed. II. Certiorari is issued, impugned order passed by respondent No.1 dated 09.02.2023 at Annexure- C, confirmed by Respondent No.2 by order dated 18.01.2024 at Annexure-E, are quashed. III. Respondents are directed to restore the registration of the petitioner within 15 days. IV. The petitioner shall make payment of any dues and/or penalty thereon within a period of 15 days of such restoration. V. Needless to say, if the payments are not made as indicated above, the order of cancellation of the registration shall stand confirmed. - 6 - HC-KAR NC: 2025:KHC-D:10157 WP No. 104287 of 2025 VI. The petitioner shall also make payment of costs of ₹5,000/- (Rupees Five Thousand Only) to the Karnataka State Legal Services Authority. Sd/- (SURAJ GOVINDARAJ) JUDGE gab Ct:pa List No.: 1 Sl No.: 0