GST Registration cannot be cancelled by merely describing Firm as Bogus: Allahabad HC

Star Metal Company Vs Additional Commissioner Grade (Allahabad High Court)

Allahabad High Court has ruled that the cancellation of GST registration cannot be solely based on labeling a firm as bogus. The court quashed the orders passed by the authorities that canceled the petitioner’s GST registration and rejected their revocation application. The court stated that cancellation of registration should be supported by valid grounds as specified in Section 29(2) of the GST Act and that the petitioner should have been given an opportunity to be heard. The respondent authority is given the option to issue a fresh notice based on specific grounds mentioned in the Act.

FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT

1. Heard Shri Aditya Pandey, learned counsel for the petitioner and learned Standing Counsel for the State – respondents.

2. The present writ petition has been filed challenging the order dated 01.12.2020 passed by the respondent no. 2 cancelling the GST registration of the petitioner, order dated 19.03.2021 passed by the respondent no. 2 rejecting the petitioner’s revocation application for cancellation of the registration as well as the order dated 14.10.2022 passed by the respondent no. 1 confirming the rejection of the revocation application of the petitioner.

Please become a Premium member. If you are already a Premium member, login here to access the full content.