The Bombay High Court has set aside the cancellation of the petitioner’s GST registration under the Maharashtra Goods and Services Tax Act, 2017, citing a violation of the principles of natural justice. The cancellation, ordered on July 7, 2023, was based on an allegedly vague show cause notice that the petitioner obtained registration through fraud or misstatement, without providing specific details.
A Division Bench of Justices M.S. Sonak and Jitendra Jain found that the notice failed to disclose the precise nature of the charges, making it impossible for the petitioner to respond meaningfully. Although the State later attempted to produce an attachment containing details, the Court noted that the attachment had not been made available on the GST portal, a fact corroborated by the petitioner with portal screenshots.
Rejecting the State’s objection on grounds of delay and availability of alternative remedies, the Court held that such procedural defects justified judicial interference despite alternate statutory options. The impugned order was quashed with liberty to the authorities to issue a fresh, detailed show cause notice, which must now be served within two weeks and responded to within another two weeks thereafter.
The Court emphasized that procedural fairness is essential, even when fraud is alleged, and left all merits open for future determination.
Mr Nirmal Pagaria, for Petitioner.
Ms Shruti D. Vyas, Addl.G.P. a/w Mr Aditya R. Deolekar, A.G.P., for Respondent-State.
Read Order
