HC Upholds GST Registration Cancellation for Fake Invoicing

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  • Last Updated on 30 September, 2025

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GST Registration Cancellation Fake Invoicing

Case Details : M.N. Trading Co. vs. Union of India - [2025] 178 taxmann.com 469 (Bombay)

Judiciary and Counsel Details

  • M.S. Sonak & Advait M. Sethna, JJ.
  • Rahul C. Thakar and C.B. Thakar for the Petitioner.
  • Saket Ketkar for the Respondent.

Facts of the Case

The petitioner-assessee challenged the order cancelling its registration under Section 29 of CGST/Maharashtra GST Act, alleging breach of natural justice. It was submitted that the show cause notice did not propose retrospective cancellation, yet the impugned order cancelled the registration with retrospective effect. The show cause notice had alleged that the assessee had issued invoices or bills without any backing supplies, resulting in wrongful availment or utilisation of input for the refund of tax. The assessee did not file a reply to the show-cause notice. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the show cause notice had provided the assessee with a clear idea of the grounds for cancellation, namely, issuance of invoices or bills without supply of goods or services. Since the assessee did not contest the show cause notice by filing a reply and had virtually accepted the serious allegations, it could not complain of any technical breach of natural justice. The Court observed that arguments based on an alleged failure of natural justice were not tenable. Consequently, the order cancelling the registration was upheld.

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