GST Registration Cancellation Order Overturned: Procedural Flaws Invalidate Notice, Reinstatement Granted with Compliance Mandate

HC quashed GST registration cancellation order due to procedural deficiencies in Show Cause Notice. Despite appeal being time-barred, the Court allowed the petition under Article 226, directing registration reinstatement subject to tax compliance. Respondent retains right to pursue legal action following proper procedural guidelines.

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Issues:
1. Quashing of Order cancelling GST registration based on Rule 86B of CGST Rules.
2. Dismissal of appeal as barred by limitation.

Analysis:
1. The petitioner sought relief from the High Court to quash the Order cancelling GST registration based on Rule 86B of CGST Rules. The Court noted that the impugned Order was issued without specific details or necessary enquiry regarding the alleged violation by the petitioner. The Court found the absence of material particulars and details in the Show Cause Notice and the Order itself. Consequently, the Court deemed the Order cancelling GST registration to be quashed and directed the respondent to reinstate the registration, while reserving the right for the respondent to take further action in accordance with the law.

2. The appeal filed by the petitioner was dismissed as barred by limitation since it was filed beyond the maximum period allowed. The Court clarified that the dismissal of the appeal on this ground did not merge with the Appellate Authority's order, allowing the High Court to entertain the petition under Article 226 of the Constitution of India. As a result, the Court allowed the petition, quashed the Show Cause Notice and the Order, directed the reinstatement of GST registration upon compliance with filing returns and payment of taxes, and reserved the right for the respondent to take necessary action within the legal framework.

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