HC Sets Aside GST Cancellation for Vague SCN

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  • Last Updated on 14 July, 2025

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Section 29 GST registration cancellation

Case Details: Saurabh Sahu vs. State of Maharashtra - [2025] 176 taxmann.com 87 (Bombay)

Judiciary and Counsel Details

  • M.S. Sonak & Jitendra Jain, JJ.
  • Nirmal Pagaria for the Petitioner.
  • Ms Shruti D. Vyas, Addl. G.P. & Aditya R. Deolekar, A.G.P. for the Respondent.

Facts of the Case

The petitioner, a registered person under the CGST Act and Maharashtra GST Act, challenged an order cancelling their GST registration issued under section 29 of the respective enactments. The cancellation followed a show cause notice which alleged that registration had been obtained by fraud, wilful misstatement, or suppression of facts.

The petitioner submitted that the said notice was entirely vague and failed to disclose any particulars or specific allegations. Although it directed the petitioner to appear for a personal hearing and warned of ex parte proceedings upon failure to appear, the notice did not specify any appointed date or time for such hearing. It was contended that the absence of specific details deprived the petitioner of an opportunity to effectively respond and amounted to a violation of principles of natural justice. The matter was accordingly placed before the High Court of Bombay.

High Court Held

The High Court of Bombay held that the cancellation order could not be sustained, as it was based on a show cause notice that was fundamentally defective. The Court observed that in proceedings under section 29 of the CGST Act, merely quoting statutory language, such as alleging fraud, misstatement, or suppression, without disclosing the underlying factual allegations was legally inadequate. It emphasised that a valid show cause notice must clearly inform the noticee of the precise nature of the alleged contravention, enabling them to prepare an effective response. The failure to mention the specific date and time for personal hearing further compounded the breach of procedural fairness. Accordingly, the impugned cancellation order was set aside, and liberty was granted to the jurisdictional officer under CGST to issue a fresh show cause notice strictly in accordance with law.

List of Cases Reviewed

  • Manek Steel LLP v. Union of India [Writ Petition No. 7126 of 2025, dated 30-6-2025] (para 15) followed

List of Cases Referred to

  •  Manek Steel LLP v. Union of India [Writ Petition No. 7126 of 2025, dated 30-6-2025] (para 15).

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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