Makersburry India Pvt. Ltd. Vs State of Maharashtra (Bombay High Court)
The Bombay High Court considered a writ petition challenging a show cause notice dated 22.08.2022, the consequent cancellation of GST registration dated 17.10.2022, and the appellate order dated 26.04.2023 confirming such cancellation under the provisions of the IGST Act and CGST Act. The show cause notice alleged that the registration had been obtained “by means of fraud, willful misstatement or suppression of facts” and also suspended the petitioner’s registration with effect from 22.08.2022.
The petitioner contended that it had replied to the notice on 25.08.2022 and cooperated with the department by producing documents, uploading records on the GST portal, and permitting inspection of the business premises. It was argued that the allegations in the show cause notice were vague, arbitrary, and in breach of principles of natural justice because no specific grounds or particulars were disclosed.
Despite the reply, the designated officer cancelled the petitioner’s registration retrospectively from 10.04.2021 on the ground that no business activity or stock was found during inspection and that the petitioner had failed to satisfactorily explain the issues raised. The petitioner challenged this order before the appellate authority under Section 107 of the CGST Act and submitted extensive documentary material, including incorporation documents, agreements relating to registered and additional places of business, electricity bills, inward and outward supply invoices with e-way bills, stock statements, balance sheets, audit reports, bank statements, transport agreements, sales and purchase registers, and additional written submissions.
