Order Cancelling GST Registration to Be Set Aside as It Did Not Provide Any Reasons for Retrospective Cancellation | HC

Case Details: Limton Metals Ltd. v. Superintendant - [2025] 170 taxmann.com 182 (Calcutta)

Judiciary and Counsel Details

• T. S. Sivagnanam, CJ. & Hiranmay Bhattacharyya, J.
• Ms Rita Mukherjee, Abhijat Das & Ms Aratrika Roy for the Appellant.
• Bhaskar Prosad Banerjee & Abhradip Maity for the Respondent.

Facts of the Case

The appellant received a show cause notice and submitted a reply but the department passed an order cancelling the registration of the appellant. It filed writ petition and contended that the order was devoid of reasons and unsustainable in law. The learned Single Bench disposed of the writ petition with certain observations and the appellant filed appeal against the order.

High Court Held

The Honorable High Court noted that the order was passed in Form GST REG-19, however the statutory format did not give any reasons as to why the appellant’s registration had to be cancelled that too with retrospective effect. The Court also noted that the appellant’s submission was that it had not received any enclosures along with Form GST REG-19.

Since, the appellant had submitted a reply to the show cause notice, it was for the authority to consider the reply and to record reasons in writing either accepting the reply or rejecting the contentions of the reply to the show cause notice. Therefore, the Court held that the impugned order cancelling the GST registration was to be set aside and matter was to be remanded back to the authority.

List of Cases Reviewed

• WPA 11277 of 2024 25/06/2024 (Para 12) reversed.