GST Registration Restored After Cancellation Withdrawn

Case Details: P.N. Impex vs. State of Maharashtra - [2026] 185 taxmann.com 772 (Bombay)

Judiciary and Counsel Details

G. S. Kulkarni & Aarti Sathe, JJ.
Sujit Sahoo & Ms Reeta Sharma for the Petitioner.
Ms Shruti D. Vyas, Addl. G.P. & Aditya R. Deolekar, AGP for the Respondent.

Facts of the Case

The petitioner challenged the cancellation of its GST registration, contending that the Show Cause Notice (SCN), order-in-original (OIO) and cancellation order were non-speaking, lacked reasons, operated retrospectively. These were in violation of principles of natural justice, thereby impairing its effective opportunity to respond. It submitted that due to such procedural defects, its ability to continue business operations and access the GST portal stood adversely affected and therefore sought quashing of the cancellation order along with restoration of registration and consequential reliefs. During the proceedings, the petitioner reiterated its reliance on procedural fairness requirements under Section 29 read with Section 30 of the CGST Act. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that, in the context of Section 29 and Section 30 of the CGST Act, once the jurisdictional officer withdrew the impugned cancellation order after verifying the legal position, the very basis of the dispute ceased to survive. It further held that Section 29 empowers cancellation of registration only in accordance with due process, and Section 30 contemplates restoration/ revocation subject to prescribed conditions, which stood effectively satisfied in view of withdrawal of the cancellation. The Court observed that continuation of the cancellation would be unjustified when the authorities themselves had accepted the legal infirmities and corrected the position during proceedings. It accordingly directed restoration of GST registration with consequential action, including issuance of an email communication to the petitioner, in a time-bound manner to operationalise the registration under the statutory framework.

List of Cases Referred to

Asstt. Commissioner (ST) v. Satyam Shivam Papers (P.) Ltd. [2022] 134 taxmann.com 241/90 GST 479/57 GSTL 97 (SC) (para 2)
Monit Trading (P.) Ltd. v. Union of India [2023] 152 taxmann.com 585/99 GST 33/76 GSTL 34 (Bombay) (para 2)
Makersburry India (P.) Ltd. v. State of Maharashtra [2023] 155 taxmann.com 542/100 GST 691/79 GSTL 341 (Bombay) (para 2)
Nirakar Ramchandra Pradhan v. Union of India [2023] 155 taxmann.com 148 (Bombay) (para 2)
Ahmed Enterprises v. Union of India [2023] 157 taxmann.com 402/[2024] 101 GST 328/80 GSTL 350 (Bombay) (para 2)
Kishore Nichani v. Union of India [2026] 183 taxmann.com 78 (Bombay) (para 2).