G.B. Traders Vs Union of India & Ors. (Bombay High Court)
The petition was filed under Article 226 of the Constitution of India challenging two orders dated 22 August 2024 and 10 October 2024, by which the petitioner’s Goods and Services Tax (GST) registration was cancelled and the subsequent application for revocation was rejected.
The petitioner, a proprietary concern engaged in aggregating used plastic PET bottles for recycling, had obtained GST registration effective from 16 March 2023 and was regularly discharging tax obligations. The business became non-operational in March 2024 due to the proprietor being diagnosed with Stage V chronic kidney disease. Despite the temporary halt in business activities, GST returns continued to be filed through a consultant.
A field inspection conducted on 29 May 2024 found no business activity at the registered premises. Based on this, proceedings for cancellation of registration were initiated under Section 29 of the CGST Act. A show-cause notice dated 11 June 2024 was issued alleging that the petitioner was not conducting business from the declared place. The registration was simultaneously suspended.
The petitioner submitted a detailed reply on 26 June 2024 and also made personal representations explaining that the business had temporarily ceased due to the proprietor’s serious health condition. It was contended that this did not justify cancellation of registration. However, these submissions were not considered, and the registration was cancelled on 22 August 2024 on the ground that the business was non-operational.
