HC Restores Appeal on Retrospective GST Cancellation

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  • Last Updated on 30 May, 2025

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GST registration cancellation appeal

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

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied