High Court imposes costs for cancelling GST Registration without assigning any reason

Cost imposed on Authorities for cancelling GST Registration of the assessee without assigning any reason 

In a recent judgment, the Hon’ble Allahabad High Court has imposed a cost on GST Authorities for cancelling GST Registration of the assessee without assigning any reason for cancellation.

ABCAUS Case Law Citation:
4418 (2025) (02) abcaus.in HC

In the instant case, the Petitioner assessee had challenged the order passed by the GST Authorities in cancelling his GST registration and appellate order passed by Additional Commissioner Appeals dismissing his appeal.

The petitioner was a proprietorship firm and is engaged in the business of Civil Works Contract having a GSTIN. A show cause notice was issued to the petitioner on the ground of non filing of returns for a continuous period of six months however due to illness, the petitioner could not see the notice thereafter GST authority, without assigning any reason for cancellation of registration, cancelled the registration of the petitioner.

The petitioner challenged the said order in appeal, which was also rejected as infructuous on the ground that registration has been revoked by the Petitioner himself.

Before the Hon’ble High Court, the Petitioner submitted that he had neither made any such statement nor moved any letter stating that the revocation application was filed, therefore, wrong averments have been made in the appellate order.

The Hon’ble High Court summoned the original records and found that alleged letter by the Petitioner was not available in the records on the basis of which the appeal had been dismissed. Whereas the order of appellate court stated that before going into the merit of appeal, it was observed that the appellant vide his letter had intimated that his registration had been revoked and he was not pressing appeal anymore. He further requested to dismiss his appeal.

The Hon’ble High Court noted that no reason had been assigned while passing the order of cancellation. The appeal had also not been decided on merit after giving due opportunity of hearing to all the stake holders but same was dismissed as infructuous on the basis of alleged letter which was not the part of the record. Therefore, impugned appellate order was not sustained in the eyes of law and same was set aside.

Accor the writ petition was allowed by the Hon’ble High Court with the cost of Rs. 5000/- awarded to the petitioner, which shall be paid by the GST Authorities. The matter was remanded to the original authority to decide the matter expeditiously after giving due opportunity of hearing to all the stake holders, in accordance with law.

Download Full Judgment Click Here >>

• Goods loaded in two trucks with one e-way bill stating both truck numbers – No evasion
• GOI makes four new Labour Codes  effective from 21st November 2025
• Provident fund dues have first charge over claim of bank under SARFAESI Act – SC
• CBDT notifies the Capital Gains Accounts (Second Amendment) Scheme, 2025
• UP Govt. notifies reduced rate of registration/stamp duty fees on lease agreements