Patna HC Restores GST Registration, Quashes Cancellation for Violation of Natural Justice

Medicana Vs Union of India (Patna High Court)

The Patna High Court considered a writ petition challenging the show cause notice dated 13.11.2023 issued in Form GST REG-17/31 for cancellation of GST registration, the ex parte order dated 15.12.2023 cancelling the petitioner’s GST registration under Section 29 of the Central Goods and Services Tax Act, 2017, and the consequential refusal to permit filing of returns. The petitioner, a registered dealer engaged in the retail sale of medicines since July 2017, submitted that the show cause notice had only been uploaded on the GST portal and was never otherwise communicated. The petitioner further contended that the notice required a reply within thirty days from the date of service but fixed personal hearing on 11.12.2023, before expiry of the thirty-day period, and that the cancellation order neither referred to the available records nor contained any reasons, making it a non-speaking order. It was also submitted that the petitioner could not file returns after cancellation of registration and that the writ petition was maintainable despite the appellate remedy under Section 107 because of violation of the principles of natural justice.

The respondents argued that uploading the show cause notice on the GST portal constituted sufficient communication, that the petitioner failed to file returns or appear for hearing, and that the writ petition was not maintainable due to the availability of the statutory appellate remedy.