Vindu Trading Vs Office of Deputy Commissioner State Tax (Bombay High Court)
In the case of Vindu Trading vs. Office of the Deputy Commissioner State Tax, the Bombay High Court set aside the retrospective cancellation of the petitioner’s GST registration without a fair hearing. The case stemmed from an initial order by the third respondent, revoking Vindu Trading’s GST registration due to the failure to update bank account details. Although the company subsequently rectified the issue and applied for restoration, it later requested cancellation of its GST registration effective from 30 November 2021, which was granted. However, an appeal filed by the Deputy Commissioner in 2022 led to a decision by the Appellate Authority on 24 March 2023, which altered the cancellation date to 1 July 2021, effectively canceling the registration ab initio.
The petitioner challenged this decision, arguing that it had not been given an opportunity to contest the appeal and had not been served with valid show-cause notices. The department’s portal indicated that the petitioner’s registration had already been canceled at its request, which was not considered by the Appellate Authority. The Bombay High Court, after examining the facts, found that the principles of natural justice had been violated. The Court concluded that the petitioner had not been heard before the retrospective cancellation was made and therefore, remanded the matter back to the Appellate Authority for fresh adjudication, ensuring the appeal is disposed of in accordance with the law and on its merits. The Court also directed that future notices be sent to the petitioner via email.
