2025 (10) TMI 444 - HC - GST

Writ petition against GST registration cancellation dismissed; petitioner allowed final chance to file appeal with pre-deposit by November 15, 2025

HC dismissed the writ petition challenging cancellation of the firm's GST registration and disposed the matter, noting a prior decision had relegated ... Cancellation of Petitioner’s Firm’s GST Registration - evasion of GST - Petitioner did not have any knowledge of the passing of the impugned order - impugned order has been passed without granting him a personal hearing - violation of principles of natural justice - HELD THAT:- However, this Court notices with some consternation that the Petitioner has relied upon third party orders and has failed to place before this Court an order passed in M/S Montage Enterprises Private Limited (Through Its Authorized Representative Sanjay Kumar Singh) & Ors. Vs. Central Goods and Services Tax Delhi North & Ors [2025 (5) TMI 297 - DELHI HIGH COURT]. where the challenge was to the same impugned order dated 31st January, 2025, as challenged in the present petition. In the said order, M/s Montage Enterprises has been relegated to the Appellate Remedy. It is expected that the ld. Counsel ought to have been fair and informed that the Court has already taken a view in respect of the same impugned order. Insofar as the principles of natural justice is concerned, the Court is of the opinion that the SCN was within the knowledge of the Petitioner. The Petitioner sought an adjournment for filing a reply, but failed to file the same. Obviously, the Petitioner was aware of the SCN having been issued and could have checked its GST portal as well. However, the Petitioner failed to do so. From the pleading in paragraph in paragraph 15 of the Petition extracted above, it appears that it was only when certain buyers and other suppliers may have raised issues with the Petitioner in view of the cancellation of the Petitioner’s GST Registration that the Petitioner has realised that its interests are hurt by the impugned order. Thereafter, it has chosen to file the present petition. Considering the fact that the matter relating to the same impugned order has already been relegated to appeal, the Court is not inclined to entertain the present writ petition. The Court is also conscious of the fact that the present writ petition has been filed after a considerable delay, however, prima facie, the explanation of the Petitioner that it acquired knowledge of the impugned order only in August, 2025, is taken to be bona fide. Accordingly, the Petitioner is permitted to file the appeal by 15th November, 2025 along with the requisite pre-deposit, in any. List for compliance on 29th October, 2025 - petition disposed off. 1. ISSUES PRESENTED AND CONSIDERED Whether the impugned Order-in-Original raising demand pursuant to a Show Cause Notice under the GST regime can be quashed on grounds of violation of principles of natural justice where (a) the noticee failed to file a reply after seeking time, (b) the registration was subsequently cancelled and the order was uploaded on the GST portal only, and (c) the noticee only became aware of the order after receipt of communications from third parties? Whether, in view of an earlier judicial determination in respect of the same impugned order relegating relief to the appellate remedy, the writ petition is maintainable or ought to be refused with liberty to pursue the statutory appeal? Whether the Court should direct remedial administrative measures in the filing/registry process to prevent multiplicity and conflicting writ petitions challenging the same impugned order? 2. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Natural justice / adequacy of opportunity to be heard Legal framework: Principles of natural justice require that a person affected by administrative action be given adequate notice of proceedings and a meaningful opportunity to be heard; statutory appeal remedies (e.g., Section 107 of the CGST Act) provide an alternative forum where judicial review in writ jurisdiction may be restrained where an efficacious statutory remedy exists. Precedent Treatment: The Court referred to prior orders in the same roster where matters arising from identical impugned orders were remitted to the appellate forum; reliance was placed by the petitioner on third-party High Court orders setting aside similar orders and remanding for hearing, but the Court noted an existing, directly relevant order dealing with the same impugned order which relegated the parties to appeal. Interpretation and reasoning: The Court found the Show Cause Notice was within the petitioner's knowledge: the petitioner sought and obtained adjournment to file reply but then did not file any reply. The petitioner's registration was cancelled thereafter; the impugned order was uploaded on the GST portal. The petitioner's explanation that it only became aware of the impugned order in August 2025 (by third-party communication) was accepted as bona fide prima facie, but this did not establish a substantive breach of natural justice because the petitioner had constructive or actual notice of the SCN and an opportunity that it failed to utilize. The Court emphasised that the petitioner could have checked the GST portal and availed the available remedies earlier. Ratio vs. Obiter: Ratio - A noticee who receives a Show Cause Notice and seeks adjournment but fails to file a reply cannot successfully assert denial of natural justice where notice of the proceedings was available on the statutory portal; mere cancellation of registration and non-receipt of physical intimation does not automatically vitiate the process where the SCN and opportunity to reply were within the noticee's knowledge. Obiter - Observations on the desirability of personal intimation practices in revenue matters and comparison to other orders in the roster. Conclusion: No ground for quashing the impugned order on the basis of denial of natural justice in the circumstances; however, the petitioner was permitted relief on limited procedural grounds (see Issue 2) rather than on merits of natural justice. Issue 2 - Availability and exercise of appellate remedy; effect of prior judicial disposition in respect of the same impugned order Legal framework: Where an efficacious statutory appeal exists, writ jurisdiction is discretionary and ordinarily not exercised to substitute the appellate forum; courts may refuse writ relief and permit filing of appeal out of time if delay is satisfactorily explained and relief by appeal remains adequate. Precedent Treatment: The Court cited that an earlier order in respect of the identical impugned Order-in-Original had relegated parties to the appellate remedy. The petitioner failed to place that order before the Court but relied on other third-party orders granting relief; the Court expected counsel to disclose the directly relevant order. Interpretation and reasoning: Given the existence of an earlier judicial decision treating the same impugned order and relegating parties to the appellate remedy, the Court exercised its discretion to refuse writ relief but accepted the petitioner's prima facie bona fide explanation for delay in acquiring knowledge of the impugned order. In the interest of equity and to avoid multiplicity of litigation, the Court permitted the petitioner to file the statutory appeal within a specified extended period and directed that the appeal not be dismissed on limitation grounds if filed within that period. Ratio vs. Obiter: Ratio - Where a prior judicial disposition directs relegation to appeal in respect of the same impugned order, subsequent writ petitions challenging the same order should ordinarily be declined and the petitioners allowed to pursue the appellate remedy; courts may grant time-bar condonation where delay is bona fide and the appellant lacked actual knowledge. Obiter - Critique of counsel's duty of fairness to place prior relevant orders before the Court. Conclusion: Writ petition not entertained on merits; petitioner allowed to file appeal before the appellate authority by a specified date with requisite pre-deposit, and if so filed the appeal shall be adjudicated on merits without dismissal on limitation grounds. Issue 3 - Administrative registry practice to prevent multiplicity and conflicting rulings Legal framework: Courts can direct administrative measures to ensure efficient case management and to avoid conflicting adjudications where multiple writ petitions arise from the same statutory order. Precedent Treatment: The Court invoked analogous registry practices followed in criminal matters arising from the same FIR to justify an administrative fix in the tax roster. Interpretation and reasoning: Given the frequent circumstance of hundreds of co-noticees receiving SCNs and the difficulty in tracking whether an identical impugned order has been previously challenged, the Court directed the Registry to add a filing field to capture the impugned order's DIN number and date at the time of filing writ petitions. This will enable the Court and registry to identify earlier petitions dealing with the same order and avoid conflicting rulings and duplication of judicial effort. Ratio vs. Obiter: Ratio - Administrative direction that registries in tax matters record the impugned order's identifier (DIN and date) on filing to assist judicial administration. Obiter - Observations on the practical burdens of the GST roster and frequency of mass-noticee matters. Conclusion: Registry directed to implement the specified field for impugned order identifiers; compliance ordered and matter listed for compliance.