- 1 - HC-KAR NC: 2026:KHC:29826 WP No. 15093 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 15093 OF 2026 (T-RES) BETWEEN: M/S. PAXAL TRADING IMPEX S(A PROPRIETARY CONCERN), HAVING ITS OFFICE AT NO. 2398, 1ST FLOOR, 13TH MAIN ROAD, SAHAKARA NAGAR, BENGALURU 560 092. REPRESENTED BY ITS PROPRIETOR, MR. PAVAN H SETHIYA …PETITIONER (BY SRI. BHARATH KUMAR V., ADVOCATE) AND: SUPERINTENDENT OF CENTRAL TAX RANGE - CND7 BENGALURU NORTH DIVISION-7, RANGE-C HAVING OFFICE AT NO.16/1, 4TH FLOOR, S.P. COMPLEX, LALBAGH ROAD, BENGALURU -560027 …RESPONDENT (BY SRI. JEEVAN J NEERALGI, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO-A. DIRECT, QUASHING THE SUSPENSION ORDER DATED 09.04.2026, PASSED BY THE RESPONDENT HEREIN Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:29826 WP No. 15093 of 2026 WHEREBY RESPONDENT HEREIN ACTING UNDER SECTION 29(2)(E) OF THE CGST ACT, 2017 AND RULE 21(A) OF THE CGST RULE, 2017 WAS PLEASED TO SUSPEND THE GSTIN NO. 29ACMPK0357N2Z1 I.E., OF THE PETITIONER HEREIN (ANNEXURE A) THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner is aggrieved by the decision of the respondent to cancel the GST registration. The decision to cancel is as per Annexure -B and is dated 04.05.2026. The decision to cancel the registration is after the Show-Cause Notice dated 09.04.2026. Sri.Bharath Kumar V., the learned counsel for the petitioner, and Sri Jeevan J Neeralgi, the learned counsel for the respondent, are heard for the disposal of the petition. - 3 - HC-KAR NC: 2026:KHC:29826 WP No. 15093 of 2026 2. Sri Bharath Kumar V submits that this Court must intervene because the Show Cause Notice is issued on grounds such as the petitioner does not conduct business from the Declared Place of Business and it has played fraud and indulged in willful misstatement of facts in getting the registration but the registration is cancelled because certain e-way bills show that the inward and outward supplies are from Gujarat to Maharashtra and no operations are undertaken in the state of Karnataka and that neither the authorized signatory nor the office staff are found at the said place of business. 3. Sri Bharath Kumar V canvasses that this is despite the petitioner filing a detailed response showing the location, furnishing a copy of the lease deed, photograph of the principal place of residence, the electricity bill to show that the petitioner functions out of the registered address. The learned counsel also canvasses that the petitioner was issued - 4 - HC-KAR NC: 2026:KHC:29826 WP No. 15093 of 2026 with a registration on 21.02.2026 and the decision to cancel is even before the first returns are filed. 4. Sri Jeevan J Neeralgi cannot dispute that the Show Cause Notice is on one ground and the decision to cancel the registration is on another and the petitioner has not been extended an opportunity to explain the relevance of the e-way bills that are mentioned in the impugned order. The lack of opportunity is obvious, and therefore, this Court must intervene to set aside the order of cancellation to restore the proceedings observing that the suspension would also be in abeyance subject to final orders on cancellation. In the light of afore the following. ORDER The petition is allowed in part and the impugned order dated 04.05.2026 [Annexure-B] is quashed with liberty to the petitioner to file response once again to the - 5 - HC-KAR NC: 2026:KHC:29826 WP No. 15093 of 2026 Show Cause Notice dated 09.04.2026 on 13.07.2026 and the respondent shall extend an opportunity of hearing and conclude the proceedings in the light of the cause shown against cancellation. It is needless to observe that the second respondent shall furnish copies of the e- way bills that form the basis for the cancellation of the registration. Sd/- (B M SHYAM PRASAD) JUDGE NV List No.: 3 Sl No.: 21