Muskan Trading Company Vs State of Maharashtra & Ors. (Bombay High Court)
In the case of Muskan Trading Company Vs State of Maharashtra & Ors., the Bombay High Court considered a petition challenging the order dated 22nd December 2022 cancelling the petitioner’s Goods and Services Tax (GST) registration.
At the outset, counsel for the petitioner clarified that the challenge in the petition was confined to the cancellation order. The petitioner argued that the GST registration had been cancelled without granting an opportunity of hearing and without following the procedure prescribed by law. It was submitted that a personal hearing ought to have been granted before passing the cancellation order and that, in the absence of such hearing, the order could not be sustained.
The petitioner further submitted that after cancellation of the GST registration, an application for revocation of cancellation had been filed before the competent authority, which was rejected. Thereafter, the petitioner preferred an appeal, which was also rejected by order dated 3rd September 2025.
In support of the challenge, reliance was placed on several judgments of the Bombay High Court, including Makersbury India Pvt. Ltd. vs. State of Maharashtra, G.B. Traders vs. Union of India & Ors., Monit Trading Private Limited vs. Union of India, C.P. Pandey & Co. vs. Commissioner of State Tax, Ramji Enterprises vs. Commissioner of State Tax, Nirakar Ramchandra Pradhan vs. Union of India, and Afzal Hussain Saiyed vs. Principal Commissioner of Central Tax. The petitioner contended that authorities are required to follow due procedure and provide cogent reasons while cancelling GST registration.
