Girivar Alloys Private Limited Vs Commissioner Central GST and Central Excise (Patna High Court)
Summary: In Shri Girivar Alloys Private Limited Vs Commissioner Central GST and Central Excise Patna II, the Patna High Court considered a writ petition challenging both cancellation of GST registration and blocking of input tax credit (ITC).
The petitioner challenged an e-mail dated 21.07.2025 informing it that ITC had been blocked by the Assistant Commissioner, Muzaffarpur Division. The petitioner contended that the blocking was undertaken without notice, hearing or a reasoned and speaking order under Rule 86A of the CGST Rules, 2017, and contrary to the guidelines contained in Circular No. CBEC- 20/16/05/2021- GST dated 02.11.2021.
The petitioner also challenged the cancellation of its registration by order dated 10.12.2025. The cancellation was stated to be based on violation of Section 16 of the Act of 2017 read with Rule 21(e) of the CGST Rules, 2017. The petitioner alleged that the cancellation order was not reasoned or speaking and violated Article 19(1)(g) of the Constitution.
On the cancellation issue, the High Court held that the cancellation order contained reasons. The Court noted that Rule 21(e) provides a ground for cancellation where a person avails input tax credit in violation of Section 16. More importantly, the Court found that the petitioner had an efficacious statutory remedy under Section 30 of the CGST Act, 2017 read with Rule 23, under which revocation of cancellation could be sought. On that basis, the Court declined to exercise its extraordinary writ jurisdiction against the cancellation order.
