HC Sets Aside GST Registration Cancellation for Natural Justice Violation

Case Details: Sarda Eco Power Ltd. vs. State of Assam - [2026] 185 taxmann.com 738 (Gauhati)

Judiciary and Counsel Details

Devashis Baruah, J.
GN Sahewalla, Sr. Adv. & M Sahewalla for the Petitioner.
B Gogoi, Addl. AG for the Respondent.

Facts of the Case

The petitioner-company engaged in electrical contractor and electrician services challenged cancellation of its GST registration under Section 29 of the CGST Act on the ground that the show cause notice issued for non-filing of returns did not specify the default period and the cancellation order was passed without granting opportunity of hearing. The petitioner further contended that the cancellation order merely referred to non-submission of reply without assigning any reasons and that it could not seek revocation within the prescribed statutory period under Section 30 of the AGST Act. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the issue was no longer res integra in view of the earlier decision rendered in Motaleb Bhuyan v. State of Assam. It observed that though the petitioner had admittedly failed to furnish returns under Section 39 of the CGST Act, the show cause notice did not specify the period of default and the cancellation order was passed within thirty days without granting hearing or recording reasons except absence of reply. It further observed that such cancellation proceedings suffered from procedural infirmities and violation of principles of natural justice. Accordingly, it set aside the order cancelling GST registration and directed the petitioner to furnish all pending returns within thirty days, while clarifying that the petitioner would remain liable for payment of tax, interest, penalty and late fee in accordance with law.