Authority: High Court of Karnataka, Bengaluru
Order Date: 4 November 2026
Case Overview
- Petition No. 33784 of 2026 (T‑RES) filed by SRI MOHANRAJ, proprietor of M/s. Yogith Metals, seeking quash of a digitally signed Show Cause Notice (Form GST REG‑17/31) dated 05‑09‑2023 (Reference No. ZA2909230187728) and a subsequent cancellation order (Form GST REG‑19) dated 16‑03‑2024 (Reference No. ZA2903240667449).
- Respondents: Assistant Commissioner of Commercial Taxes, LGSTO‑57, Division‑05, Bengaluru and Commissioner of Commercial Taxes, Kalidasan Marg, Bengaluru.
- Background: GST registration was granted on 14‑02‑2022. Returns were filed from March 2022 to January 2023. Due to financial constraints, returns for February and March 2023 were not filed and business operations ceased from April 2023. The petitioner was unaware of the Show Cause Notice and the cancellation order.
- Allegations: The cancellation was based on alleged violation of Rule 21(d) of the CGST Rules for not filing a bank account statement as required under Rule 10A, despite the petitioner’s claim that the bank statement can now be produced and all tax liabilities, penalties, and interest can be settled.
- Counsel for petitioner (Ms. Rama P.V.) argued for restoration of proceedings to allow filing of a response to the Show Cause Notice. The Government Pleader (Ms. Jyoti M. Maradi) noted that the petitioner was not given prior notice regarding the alleged non‑compliance with Rule 10A.
Final Outcome
- The petition is allowed.
- The cancellation order dated 16‑03‑2024 is quashed.
- The petitioner may file a response and supporting documents, including the required bank statement, along with a certified copy of this order to the first respondent, no later than 11‑11‑2026.
- The first respondent is directed to consider the petitioner’s response, the returns filed, and the petitioner’s willingness to pay taxes, penalty, and interest, and to pass appropriate just orders.
Topics: GST, Taxation, Legal Remedy