Case Note & Summary
The petitioner, Rawman Metal & Alloys, a proprietorship concern, filed a writ petition under Article 226 of the Constitution of India challenging the order dated 27 December 2024 passed by the Deputy Commissioner of State Tax, Thane, cancelling its GST registration. The petitioner contended that the show cause notice dated 20 December 2024 was not served upon it and that the cancellation order was passed ex-parte without granting any opportunity of hearing, thereby violating principles of natural justice. The respondent argued that the notice was served through the GST portal. The court examined the record and found that the show cause notice was uploaded on the portal but there was no proof of actual service or acknowledgment by the petitioner. The court held that mere uploading on the portal without further steps to ensure service does not constitute proper service. The cancellation order was set aside as it was passed without affording an opportunity of hearing. The court directed the respondent to restore the GST registration within two weeks from the date of production of the order, subject to the petitioner filing a reply to the show cause notice within one week. The respondent was directed to pass a fresh order after hearing the petitioner. The writ petition was allowed in those terms. The interim application was disposed of.
Headnote
A) Constitutional Law - Natural Justice - Right to be Heard - Cancellation of GST Registration - Show Cause Notice Not Served - The petitioner's GST registration was cancelled ex-parte without proper service of show cause notice and without granting an opportunity of hearing. The court held that the cancellation order violated principles of natural justice and was liable to be set aside. (Paras 1-5) B) Goods and Services Tax - Cancellation of Registration - Section 29 of the Central Goods and Services Tax Act, 2017 - Restoration of Registration - The court directed the respondent to restore the GST registration of the petitioner within two weeks from the date of production of the order, subject to the petitioner filing a reply to the show cause notice and the respondent passing a fresh order after hearing the petitioner. (Paras 5-6)
Issue of Consideration
Whether the cancellation of GST registration of the petitioner was valid when the show cause notice was not served properly and no opportunity of hearing was granted before the ex-parte order of cancellation.
Final Decision
The court allowed the writ petition, set aside the cancellation order dated 27 December 2024, and directed the respondent to restore the GST registration within two weeks from the date of production of the order, subject to the petitioner filing a reply to the show cause notice within one week. The respondent was directed to pass a fresh order after hearing the petitioner.
Law Points
- Natural justice
- opportunity of hearing
- cancellation of GST registration
- show cause notice
- ex-parte order
- restoration of registration
