2025 (9) TMI 668 - HC - GST

Retrospective GST registration cancellation set aside for breach of natural justice; petitioner granted reply and personal hearing

Shivi Kansal Versus Union Of India Through Its Secretary & Ors.

HC set aside the impugned order of 9 Aug 2025 that retrospectively cancelled GST registration. Finding a breach of natural justice-petitioner had no ... Retrospective cancellation of GST registration - Petitioner has not had an opportunity of dealing with the SCN - violation of principles of natural justice - HELD THAT:- Since the Petitioner has not had an opportunity of dealing with the SCN as also because of the unfortunate demise of the sole proprietor of the firm during COVID-19 pandemic, the Petitioner is given an opportunity to file a reply to SCN dated 25th July 2022 - Upon the reply being filed, the Petitioner be given personal hearing and a reasoned order be passed in respect of the SCN. The impugned order dated 9th August 2025 is set aside - Petition disposed off. Petition under Articles 226 and 227 challenges cancellation of GST registration by an 'impugned order' dated 9th August 2025, which cancelled registration retrospectively w.e.f. 1 July 2017. GST registration belonged to a sole proprietorship; the sole proprietor died on 28 April 2021 and Form GST REG-16 was filed notifying the death. A Show Cause Notice dated 25 July 2022 alleged: 'Collects any amount as representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due.' No reply was filed and the impugned order was passed without affording the petitioner an opportunity to be heard. Court set aside the impugned order, directed the petitioner to file a reply to the SCN by 31 October 2025, to disclose suppliers whose refunds were held up, and to be given personal hearing and a reasoned order thereafter. Access to the GST Portal to be restored within one week. Court did not decide the merits.