The Bombay High Court has set aside a revisional order that retrospectively cancelled a taxpayer’s Goods and Services Tax (GST) registration from the very date of initial registration, citing a gross violation of the principles of natural justice.
A Division Bench of Justice M.S. Sonak and Justice Advait M. Sethna ruled that the department failed to validly serve the show-cause notice initiating the revisional proceedings, even though it had the taxpayer’s updated address on record.
The petitioner had voluntarily applied for cancellation of GST registration on 2 June 2022. The department accepted this request and issued an order on 22 June 2022, cancelling registration effective 31 May 2022. This order was properly served at the petitioner’s correct Ahmedabad address.
However, nearly three years later, the department initiated revisional proceedings, alleging that the prior cancellation was obtained by fraud. On 22 July 2024, the department passed a revisional order retrospectively cancelling the registration from 12 August 2017, the original date of registration.
The petitioner argued that no show-cause notice or intimation of the revisional proceedings was ever served.
The State contended that The petitioner had provided incorrect or confusing addresses. Notices were sent by email and attempts were made at the earlier address.
However, the Court noted that The department itself had used the correct Ahmedabad address in 2022 when issuing the original cancellation order. Despite having this address, the show-cause notice dated 1 July 2024 was served at an outdated location. The department’s own reports relied upon (dated 25 July 2024) confirmed service attempts only at the old portal address.
The Court held that service at an outdated address, when the correct address was available, was invalid. There was no effective service of the 1 July 2024 show-cause notice. The revisional order dated 22 July 2024 was passed without giving the petitioner an opportunity of hearing. On this “short ground” of breach of natural justice, the Court quashed the revisional order.
While quashing the order, the Court did not examine the fraud allegations on merits and allowed the department to serve the same show-cause notice again.
With the revisional order set aside, the original cancellation order of 22 June 2022 stands revived, and the Court directed that this must be updated on the GST portal at the earliest.
Case Details
Case Title: M/s. Dipak Metal Industries Versus Deputy Commissioner of State Tax
Case No.: Writ Petition No.10026 Of 2025
Date: 22 September 2025
Counsel For Petitioner: Devendra B. Harnesha
Counsel For Respondent: S.D. Vyas, Addl. G.P.
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