Nairson Multiventures Private Limited Vs State of Chhattisgarh (Chhattisgarh High Court)
The Chhattisgarh High Court considered two writ petitions challenging show-cause notices and final orders issued by the Assistant Commissioner of State Tax cancelling the petitioners’ GST registrations. The petitioners, private limited companies engaged in trading, sale and purchase of steel products, were issued show-cause notices dated 19.9.2025 and 21.8.2025 under Rule 21(a) of the Chhattisgarh GST Rules, 2017 on the ground that the business was not being operated from the declared place.
The petitioners contended that although seven days’ time was granted to file replies, the show-cause notices did not specify the date and time for personal hearing as required under Form GST REG-17. It was also submitted that in one case, a director was arrested on 20.8.2025 and released on bail on 17.10.2025, and during this period the impugned cancellation orders were passed. The petitioners further argued that the final orders cancelled the GST registration with retrospective effect from the date of issuance of the show-cause notices, despite no such proposal being mentioned in the notices. It was also contended that the cancellation was based on physical verification, but the verification report was not uploaded on the common portal as mandated under Rule 25 of the CGST Rules, 2017.
