Dipak Metal Industries Vs Deputy Commissioner of State Tax (Bombay High Court)
The Bombay High Court, in the case of Dipak Metal Industries vs. Deputy Commissioner of State Tax, quashed a revisional order that had retrospectively canceled the petitioner’s GST registration from the initial date of registration (August 12, 2017). The High Court set aside the order strictly on the grounds of gross violation of the principles of natural justice, ruling that the Revisional Authority failed to serve a proper show-cause notice to the petitioner’s correct, updated address.
Key Facts and Issue
The petitioner, Dipak Metal Industries, had initially applied for the voluntary cancellation of its GST registration on June 2, 2022, which the Department allowed via an order dated June 22, 2022, effective from May 31, 2022.
Nearly three years later, the Deputy Commissioner of State Tax (the Revisional Authority) initiated suo motu revisional proceedings under Section 108 of the CGST/MGST Act, 2017, alleging that the petitioner was involved in fraudulent activities and had obtained the original cancellation through fraud.
On July 22, 2024, the Revisional Authority passed an order revising the initial cancellation and retrospectively canceling the petitioner’s GST registration from August 12, 2017 (the date of initial registration). This order was challenged by the petitioner before the High Court.
