Gujarat High Court

Setu Joy Private Limited Through ... vs State Of Gujarat on 14 November, 2025

Author: A.S. Supehia

Bench: A.S. Supehia

                                                                                                          NEUTRAL CITATION




                           C/SCA/10970/2025                               JUDGMENT DATED: 14/11/2025

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                                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                     R/SPECIAL CIVIL APPLICATION NO. 10970 of 2025


                      FOR APPROVAL AND SIGNATURE:


                      HONOURABLE MR. JUSTICE A.S. SUPEHIA                  Sd/-
                      and
                      HONOURABLE MR. JUSTICE PRANAV TRIVEDI                 Sd/-
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                                   Approved for Reporting                Yes           No
                                                                                       ✔
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                           SETU JOY PRIVATE LIMITED THROUGH DIRECTOR MUKESHBHAI
                                                KANTILAL SHAH
                                                     Versus
                                          STATE OF GUJARAT & ORS.
                      ================================================================
                      Appearance:
                      MR. APURVA N MEHTA(7202) for the Petitioner(s) No. 1
                      MS NIMISHA J. PAREKH, ASSISTANT GOVERNMENT PLEADER for the
                      Respondent(s) No. 1,2,3
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                         CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
                               and
                               HONOURABLE MR. JUSTICE PRANAV TRIVEDI

                                                     Date : 14/11/2025

                                                     ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI)

1. Heard learned advocate Mr.Apurva N. Mehta for the

petitioner and learned Assistant Government Pleader Ms.Nimisha

J. Parekh for the respondents-State.

2. Having regard to the controversy involved in this petition,

with the consent of the learned advocates for the respective

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parties, the matter is taken up for hearing.

3. Rule returnable forthwith. Learned Assistant Government

Pleader Ms.Parekh waives service of notice of rule on behalf of

respondents-State.

4. By this petition, under Article 226 of the Constitution of

India, the petitioner has prayed to quash and set aside the show

cause notice for cancellation of the registration dated 09.09.2024

under the provisions of Gujarat Goods & Service Tax Act, 2017,

(hereinafter referred to as "the Act" for short) as well as the

order of cancellation of Registration dated 27.09.2024 passed by

the State Tax Officer, Ghatak-75, Bhavnagar (hereinafter referred

to as "the respondent" for short) as well as the order in Appeal

dated 06.05.2025 passed under Section 107 of the Act by the

Deputy State Tax Commissioner, Appeals-9, Bhavnagar

(hereinafter referred to as "the Appellate Authority" for short).

5. The brief facts of the case are that the petitioner is a Pvt.

Ltd. Company engaged in the business of establishing and

running of amusement parks, cinemas, water parks, resorts etc.

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The petitioner obtained registration under the provisions of the

Act on 01.07.2017.

5.1. It is the case of the petitioner that petitioner Company had

filed all the periodic self - assessment returns under the

provisions of the Act from 01.07.2017 till 31.03.2024 and

discharged the liability as per such returns. However, w.e.f.

01.04.2024, periodic returns under the provisions of Section 39 of

the Act could not be filed by the petitioner - Company due to

some financial difficulties.

5.2. In view of the non-filing of the periodic returns, the

respondent issued a show cause notice on 09.09.2024 calling

upon to show cause as to why the registration should not be

cancelled as per provisions of Section 29 (2) (c) of the Act. The

petitioner was directed to respond to the show cause notice

within a period 7 days and thereafter, personal hearing was fixed

on 18.09.2024. The petitioner failed to appear for personal

hearing on the appointed date, which led to an ex parte order

being passed, cancelling the Registration of the petitioner-

Company. The reason for cancellation was non-furnishing of the

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periodic returns and non-payment of tax due to non filing of such

returns.

5.3. It is the case of the petitioner that as soon as the petitioner

came to know about the order of cancellation, an appeal under

the provisions of Section 107 of the Act was preferred on

11.04.2025 before the Appellate Authority by submitting Form

GST APL - 01. The pre- deposit amount was also deposited by the

petitioner in electronic cash ledger. The appellate Authority by

way of impugned appeal order dated 06.05.2025 rejected the

appeal of the petitioner on the ground that the appeal was filed

beyond the period of limitation and the appellate authority did

not have any power to condone the delay in filing the appeal.

The order of appeal along with order of cancellation are

impugned in the present petition.

6. Learned advocate Mr.Mehta for the petitioner has

submitted that the main reason for the cancellation of the

registration of the petitioner is the non-filing of return for a

continuous period of six months. It was submitted by learned

advocate Mr.Mehta that the petitioner is ready and willing to

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furnish all returns and pay dues as may be sought for by the

respondent and the petitioner Company undertakes to pay all

the dues alongwith interest and late fees, which can be

determined as per law.

6.1. It was submitted that the petitioner-Company undertakes

that henceforth it would comply with the provisions of law & file

necessary returns, and that any inaction in filing returns would

lead to automatic cancellation of its registration.

6.2. Learned advocate Mr. Mehta for the petitioner has submitted

that as a last opportunity, the petitioner should be allowed to

rectify its bona fide mistake by payment of self assessed tax

along with interest and late fees.

6.3. According to learned advocate Mr.Mehta, as ascertained by

petitioner, the tax liability comes at Rs.14,56,780/-, being equal

amount of SGST i.e. Rs.7,28,390/- and CGST i.e. Rs.7,28,390/. The

petitioner would also be liable to pay interest and late penalty on

self assessed tax. The petitioner has a balance of Rs.4,33,668/- in

its electronic cash ledger, and the remaining amount, as

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determined, would be paid from the cash ledger.

7. Per contra, learned Government Pleader Ms.Parekh has

submitted on the basis of the affidavit-in-reply filed by the

respondent that the petitioner has filed all its returns and

outstanding dues towards pending tax, interest and penalty upto

August, 2025. The same is verified by concerned Assessing

Authority. In light of the above facts & circumstances,

appropriate orders for revocation of cancellation of registration

of the petitioner-Company is required to be passed by this Court.

Learned Assistant Government Pleader has relied on para 5 of

the affidavit-in-reply filed on behalf of the respondent No.2,

which reads as under :

"5. The answering respondent states that the petitioner has filed all his returns & outstanding dues towards pending tax, interest and penalty upto August, 2025. In light of the above facts & circumstances, appropriate orders for revocation of registration of the petitioner is required to be passed by this Hon'ble Court."

8. Considering the above submissions, it appears that the

petitioner has deposited the amount towards tax, interest and

late fee and has also filed the return under Section 39 of the Act.

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On the basis of the statement made by the learned Assistant

Government Pleader and the Affidavit-in-reply filed by the

respondent, the impugned order(s) passed by the Appellate

Authority as well as the respondents cancelling the registration

of the petitioner is hereby quashed and set aside. The

registration of the petitioner would be restored by the