TaxTMI 
TaxTMI 
TaxTMI 
Article 19(1)(g) as a Constitutional Shield Against Arbitrary GST Registration Cancellation
X X X X Extracts X X X X
X X X X Extracts X X X X
....rticle 19(1)(g) as a Constitutional Shield Against Arbitrary GST Registration Cancellation<br>By: - Abhishek Raja<br>Goods and Services Tax - GST<br>Dated:- 14-8-2025<br><br>The Goods and Services Tax (GST) regime, while streamlining indirect taxation in India, has also led to instances where businesses face abrupt registration cancellations, severely impacting their operations. However, the Const....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itution of India provides a robust safeguard-Article 19(1)(g), which guarantees every citizen the fundamental right "to practise any profession, or to carry on any occupation, trade or business." Recent judicial pronouncements have reinforced that arbitrary cancellation of GST registration violates this constitutional right, apart from being contrary to principles of natural justice and....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Article 14 (right to equality). Courts have intervened where tax authorities have acted disproportionately, denying taxpayers a fair opportunity to defend themselves. Key Judicial Precedents Upholding Article 19(1)(g) in GST Matters 1. M/s A.M. Enterprises Versus State of Himachal Pradesh & Ors. - 2024 (9) TMI 1485 - HIMACHAL PRADESH HIGH COURT The Himachal Pradesh High Court he....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ld that cancelling GST registration merely for an alleged violation of Rule 86B (restriction on use of ITC for payment of output tax) was a disproportionate punishment. The Court ruled that such cancellation was arbitrary, violating Article 14 and Article 19(1)(g), as it crippled the petitioner's business. 2. M/s. Maharashtra Scrap Versus Secretary Department Of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Revenue Ministry Of Finance, Union Of India And Others - 2024 (3) TMI 437 - BOMBAY HIGH COURT The Bombay High Court set aside a GST registration cancellation order where the Revenue Department failed to provide specific details of the alleged fraud. The Court emphasized that denying the right to business without proper justification violates Article 19(1)(g) and principl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es of natural justice. 3. M/s. Rooban Agencies, Rep. by its proprietor, A. Stanley Rooban S/o. Aruldhas Versus The Assistant Commissioner (GST Appeal), The Assistant Commissioner (GST) - 2024 (4) TMI 760 - MADRAS HIGH COURT The Madras High Court observed that cancelling registration without proper notice or opportunity for hearing amounts to a "capital punishment" for small-s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cale traders. The Court highlighted that such actions directly infringe upon the fundamental right to carry on trade under Article 19(1)(g). 4. Tvl. Suguna Cutpiece Center Versus The Appellate Deputy Commissioner (ST) (GST), The Assistant Commissioner (Circle), Salem Bazaar - 2022 (2) TMI 933 - MADRAS HIGH COURT The Madras High Court ruled that GST laws cannot ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be interpreted in a manner that denies citizens their constitutional right to trade and commerce. The Court reiterated that tax authorities must ensure fairness while exercising powers under GST laws. 5. M/s S.S. Enterprises Lucknow Thru. Its Proprietor Raj Kumar Singh Versus State Of U.P. Thru. Addl. Chief Secy. State Tax Deptt. Lko And 2 Others - 2024 (3) TMI 1093 - ALLAHABAD HIG....
X X X X Extracts X X X X
X X X X Extracts X X X X
....H COURT The Allahabad High Court held that cancellation of GST registration has severe consequences on the right to business under Article 19(1)(g). Therefore, any such order must be a reasoned and speaking order, complying with natural justice principles. Conclusion: Judicial Safeguards Against Arbitrary GST Actions The judiciary has consistently upheld that GST regist....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ration cancellation cannot be a mechanical or punitive action-it must be based on proper reasoning, evidence, and adherence to principles of natural justice. Article 19(1)(g) serves as a constitutional shield protecting businesses from arbitrary state action. Taxpayers must be aware of their rights and challenge unjust cancellations, while authorities must ensure that reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ulatory actions do not unreasonably restrict trade and commerce. ----- Abhishek Raja Ram 9810638155 Reply By KASTURI SETHI as = The best article in the interest of fair social justice and, in turn, in the interest of Trade and Industry. Selection of topic is timely. Fine compilation. Dated: 17-8-2025<br> Scholarly articles for knowledge sharing by authors, experts, p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rofessionals ....