Anil Kishore Purohit Vs State of Madhya Pradesh (Madhya Pradesh High Court)
GST Registration Restored as Cancellation Based on Flawed Inspection; GST Cancellation Quashed for Violation of Natural Justice; Contradictory Stand on Business Activity Vitiates GST Action; Failure to Decide Revocation Application Invalidates GST Cancellation; Field Visit Without Panchanama Cannot Support GST Registration Cancellation; Appeal Dismissal on Limitation Set Aside Due to Procedural Lapses; GST Registration Revived Where Tax Demands Themselves Proved Business
The Madhya Pradesh High Court examined a writ petition challenging the cancellation of a GST registration, rejection of revocation, and dismissal of appeal arising from actions taken by the State GST authorities. The petitioner, proprietor of a firm engaged in supply of electrical goods, was registered under GST and operating as M/s Aditya Electricals. A show-cause notice dated 25.08.2023 was issued proposing cancellation of registration under section 29(2)(e) of the CGST Act, alleging fraud, wilful misstatement, or suppression of facts. The notice was uploaded on the GST portal but not physically served, and according to the petitioner, neither he nor his Chartered Accountant had knowledge of it. Consequently, no reply was filed, and the registration was cancelled by order dated 22.09.2023 with retrospective effect from 10.10.2017.
The petitioner later filed an application for revocation of cancellation on 18.10.2023. He contended that no hearing was granted and no order was passed on the revocation application. According to the petitioner, he became aware of the cancellation only after receiving demand notices dated 08.07.2024 for the financial years 2019–20, 2021–22, and 2022–23. An appeal was thereafter filed against the cancellation order, but it was dismissed on 18.03.2025 on the ground of limitation and non-appearance. During the pendency of the writ petition, assessment orders under section 63 were also passed on 11.06.2025 for the same three financial years.
