Anil Art And Craft Vs State of Uttar Pradesh And Another (Allahabad High Court)
The Allahabad High Court adjudicated a writ petition filed by Anil Art and Craft challenging the cancellation of its GST registration by the Assistant Commissioner, State Tax, Bhadohi Sector-1, Uttar Pradesh. The cancellation order dated 15.10.2025 followed a show cause notice issued on 08.10.2025 under FORM GST REG-17, alleging that the petitioner availed input tax credit in violation of Section 16 of the CGST Act, 2017. The petitioner submitted a detailed reply on 15.10.2025, explaining that a survey by the Directorate General of GST Intelligence (DGGI) was pending and that it was cooperating fully, requesting that the proceeding be stayed until the DGGI action concluded.
Despite this, the cancellation order issued under FORM GST REG-19 stated the petitioner’s reply was “not satisfactory” and cancelled registration effective 08.10.2025. The High Court observed that the order was unreasoned, failing to disclose any rationale for rejecting the petitioner’s explanation. It emphasized that procedural law mandates reasoned orders, particularly in matters affecting business operations, noting that cancellation of registration under GST effectively halts the business’s ability to issue tax invoices or claim input tax credit, amounting to the economic “death” of the business entity.
