System generated notice cancelling GST registration is quashed and set aside

System generated notice cancelling GST registration is quashed and set aside by Allahabad High Court 

System generated notice cancelling GST registration is quashed and set aside by Allahabad High Court holding that power lies with the officers and not with the system and notice which is system generated and does not bear the name/office, cannot be justified

ABCAUS Case Law Citation:
4586 (2025) (05) abcaus.in HC

In the instant case, the assessee had filed a Writ Petition challenging the order whereby the GST registration of the petitioner had been cancelled.

It was submitted that the petitioner was issued a show cause notice for cancellation of registration on account of failure to furnish return for a continuous period of six months and the registration of the petitioner was suspended from the date of said SCN.

It was submitted that the notice issued inter alia indicated ‘Jurisdictional Officer System Generated Notice, Contact Jurisdiction Office for further process’.

It was contended that issuance of the notice itself was contrary to law as the authority vests in officers and not in the system and, therefore, the consequential order cancelling the registration of the petitioner deserves to be quashed and set aside.

The GST Department submitted that as per explanation given by GSTN inter alia indicating ‘Advisory on issuance of Notices/Orders without digital signatures of the issuing authorities’. The indications made therein are that as the authority logs in by way of digital signature, it is not necessary that the orders which are passed should bear the digital signatures.

The Hon’ble High Court opined that the advisory sought to be relied on by the GST Department in the present case is misplaced, the same may be a valid explanation in case where the name and office of the issuing authority is indicated, however, the same does not bear the digital signatures.

The Hon’ble High Court observed that in the present case, the show cause notice did not bear either the name or the office of the issuing authority and what has been indicated is that the same is system generated.

The Hon’ble High Court observed that as the power lies with the officers and not with the system, the issuance of notice which is system generated and does not bear the name/office, cannot be justified based on the explanation sought to be produced.

Consequently, the Hon’ble High Court held that the notice issued itself was dehors the Act and the Rules, the same cannot be sustained.

Accordingly, the writ petition was allowed. The show cause notice and order cancelling GST registration were quashed and set aside. Department was given liberty to issue a fresh notice in case the occasion arises, in accordance with law.

Download Full Judgment Click Here >>

• A bald statement recorded during survey can not be basis for any addition
• ICAI issued Guidelines for responding to Tenders by Chartered Accountants
• Empanelment of ICAI Exam observer for January 2027 Examinations. Last date: 20.11.2026
• No arrest under GST- Major decision of 57th Meeting of GST Council held on 8th October 2026
• Later SC ruling cannot render an act done in compliance of a court order a statutory default