HC Restores Appeal on Retrospective GST Cancellation

Case Details: A P Manufacturing Co vs. Special Commissioner I Appellate Authority - [2025] 174 taxmann.com 884 (Delhi)

Judiciary and Counsel Details

• Pratibha M. Singh & Rajneesh Kumar Gupta, JJ.
• Pritish Sabharwal, Adv. for the Petitioner.
• Ms Vaishali Gupta, Panel Counsel for the Respondent.

Facts of the Case

The petitioner was a registered person under the CGST and Delhi GST Act whose registration was cancelled retrospectively following the issuance of a show cause notice by the jurisdictional officer. However, the petitioner submitted that they had no knowledge of the said show cause notice and, consequently, did not file any reply or participate in the cancellation proceedings. Based on this non-participation, the officer passed an order cancelling the registration with retrospective effect.

The petitioner subsequently filed an appeal under Section 107 of the CGST and Delhi GST Act, but the same was dismissed by the appellate authority on the ground of limitation. The petitioner challenged the dismissal before the Hon’ble High Court of Delhi, contending that the non-service of the show cause notice violated the principles of natural justice and that the opportunity to be heard had been denied.

High Court Held

The Hon’ble Delhi High Court held that the petitioner’s grievance regarding non-receipt of the show cause notice raised a substantial issue of denial of natural justice. The Court referred to its earlier decision in Blackmelonadvance Technology Company (P.) Ltd. v. Commissioner of State Goods and Services Tax Delhi [2025] 174 taxmann.com 305 (Delhi) , where it had observed that the absence of knowledge of a show cause notice precludes effective participation and mandates affording an opportunity to be heard. It was therefore concluded that the petitioner’s appeal merited restoration and a decision on merits.

Accordingly, the Hon’ble Court directed that the appellate authority shall hear the petitioner’s appeal afresh, subject to a cost, reinforcing the principle that compliance with natural justice must precede adjudication under Section 29 read with Section 107 of the CGST and Delhi GST Act.

List of Cases Reviewed

• Blackmelonadvance Technology Company (P.) Ltd. v. Commissioner of State GST Delhi [2025] 174 taxmann.com 305 (Delhi) (para 7), followed

List of Cases Referred to

• Blackmelonadvance Technology Company (P.) Ltd. v. Commissioner of State GST Delhi [2025] 174 taxmann.com 305 (Delhi) (para 6).