Sunny Enterprises Vs Union of India (Allahabad High Court)
Summary: The Allahabad High Court considered a writ petition challenging the cancellation of the petitioner’s GST registration under Section 29(2)(d) of GST Act by order dated 17.11.2022 and the subsequent appellate order dated 29.09.2025, whereby the appeal was dismissed as being beyond limitation.
The petitioner submitted that no effective opportunity of hearing had been granted before cancellation of registration. It was argued that the discretionary power under Section 29(2) could not be exercised mechanically and that the cancellation order was passed ex parte. According to the petitioner, day-to-day GST compliances and portal operations were being handled by the petitioner’s accountant, with the result that the petitioner remained unaware of the show cause notice uploaded on the GST portal and could not submit a reply within the prescribed time.
The Revenue, on the other hand, submitted that an opportunity had been granted but was not availed by the petitioner, and therefore the cancellation order could not be characterised as having been passed without an opportunity of hearing.
The Court noted that the issue had similarly been considered by a coordinate Bench in M/s Chandra Sain Vs Union of India and Ors, Writ Tax No. 147 of 2022. In that matter, the coordinate Bench had considered a delayed GST appeal and the underlying cancellation of registration. The appellate authority had considered itself barred from condoning the delay under Section 107(4) of the GST Act.
