S. Nabad Ali Mustak Ahmed Vs Union of India (Rajasthan High Court)
Summary: The Rajasthan High Court considered a writ petition filed by M/s S. Nabad Ali Mustak Ahmed, a proprietorship firm engaged in manufacturing marble slabs and registered under the RGST/CGST Acts, challenging cancellation of its GST registration and dismissal of its statutory appeal as time-barred. The petitioner had regularly filed returns up to July 2023 but alleged that medical incapacity thereafter resulted in non-filing of GSTR-1 and GSTR-3B. A Show Cause Notice dated 18.10.2023 was issued proposing cancellation for non-filing of returns. The petitioner contended that the notice was not effectively served under Section 169 and was vague because it did not specify the continuous six-month default contemplated by Section 29(2)(c). Registration was cancelled retrospectively from 01.09.2023 by order dated 06.12.2023. The petitioner subsequently filed an appeal under Section 107 on 24.09.2024, but the Appellate Authority rejected it as beyond the statutory condonable period. During the writ proceedings, the petitioner abandoned the constitutional challenge to Sections 107(1) and 107(4).
The High Court held that cancellation of GST registration carries serious civil consequences because it disables a registered person from carrying on taxable business and affects livelihood, requiring authorities to adopt a fair, reasonable and non-technical approach. Relying particularly on Pooja Construction Company and considering the petitioner’s medical explanation, the Court held that although the statutory Appellate Authority itself could not condone delay beyond Section 107(4), the High Court’s constitutional jurisdiction under Articles 226 and 227 was of a different character.
