Florida Solvent Pvt Ltd Vs Superintendent Range II Thane and Another (Bombay High Court)
The Bombay High Court heard a petition filed by Florida Solvent Pvt Ltd challenging the cancellation of its GST registration by the Superintendent, Range II, Thane, effective from 15 June 2022. The Petitioner’s counsel, Ms. Aarti Agarwal, argued that the cancellation order dated 22 September 2025 was non-speaking and unreasoned, failing to consider the detailed reply and documents submitted by the Petitioner. She contended that this amounted to a violation of the principles of natural justice and fair play.
The Petitioner had submitted a detailed reply to the show-cause notice dated 15 September 2025, including tax invoices, e-way bills, ledger statements, and bank statements, demonstrating sample payments to the supplier. However, the cancellation order merely referenced the show-cause notice and the fact that the Petitioner attended the personal hearing. The order concluded that the Petitioner’s registration was liable to be cancelled under Rule 21(e) for allegedly availing input tax credit (ITC) in violation of Section 16 of the GST Act, without explaining how the decision was reached or considering the Petitioner’s submissions.
The High Court emphasized that reasons in a decision link the decision-maker’s reasoning to the outcome. In this case, the cancellation order lacked such reasoning and failed to reflect consideration of the Petitioner’s documents or arguments. Accepting the Petitioner’s contention that natural justice had not been followed, the Court quashed and set aside the cancellation order and remanded the matter to Respondent No. 1, directing them to adjudicate the show-cause notice in accordance with law and on its merits expeditiously.
