Facts of the Case

Sunshine Traders, represented through its partner Shreenath Agrawal, filed Writ Petition No.9288 of 2023 under Article 226 of the Constitution before the Bombay High Court, challenging a notice dated 23.05.2023 (Exhibit-A) and the consequential order dated 13.06.2023 (Exhibit-B) suspending/cancelling its GST registration. The petitioner sought a writ of mandamus directing the Revenue to revoke the cancellation and restore the registration, together with interim relief restraining enforcement of the impugned order pending final disposal. The matter was heard and disposed of on 16.10.2023.

Issues Involved

  1. Whether the impugned notice and order suspending/cancelling the petitioner's GST registration were liable to be set aside.
  2. Whether the Revenue could be permitted to withdraw the impugned order with liberty to issue a fresh show-cause notice, and what consequence follows for the petitioner's registration status.

Petitioner's Arguments

  • The impugned notice dated 23.05.2023 and the consequential order dated 13.06.2023 suspending the GST registration were illegal and warranted being quashed.
  • Sought a mandamus directing immediate revocation of the suspension and restoration of the registration, along with interim protection pending final disposal of the petition.

Respondent's Arguments

  • Counsel for the Revenue, on instructions, fairly stated that the department would withdraw the impugned order with liberty to issue a fresh show-cause notice, rather than defend the notice and order on merits.

Court Order/Findings

  • The Court accepted the Revenue's statement and permitted withdrawal of the impugned order with liberty to issue a fresh show-cause notice, directing that any fresh exercise be undertaken strictly in accordance with law.
  • Once the show-cause notice and the consequential order stood withdrawn, the petitioner's GST registration was to stand restored, this not precluding the Revenue from issuing any appropriate fresh order as the law may permit to safeguard the interest of the Revenue.
  • All contentions on any future proceedings were expressly kept open; the petition was disposed of with no order as to costs.

Important Clarification

  • When Revenue voluntarily withdraws an impugned suspension/cancellation order, the assessee's registration stands restored by operation of that withdrawal itself, without a separate substantive adjudication on merits.
  • Withdrawal of an order does not bar the department from initiating a fresh, properly conducted show-cause process to protect revenue interests.

Sections Involved

  • Central Goods and Services Tax Act, 2017 – governing statute for GST registration, suspension and cancellation.
  • Article 226, Constitution of India – writ jurisdiction invoked to challenge the suspension/cancellation of registration.

Decision – In Favour of

In favour of the Assessee. The GST registration stood restored on the Revenue's own concession to withdraw the impugned suspension/cancellation order, though without any adjudication on merits and with liberty reserved to the Revenue to proceed afresh in accordance with law.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Judicature at Bombay
  • Case No.: Writ Petition No. 9288 of 2023
  • CNR: Not available on record
  • Coram: Hon'ble G. S. Kulkarni, J. and Hon'ble Jitendra Jain, J.
  • Decision Date: 16.10.2023
  • Disposal Nature: Writ petition disposed of; impugned suspension/cancellation order withdrawn, GST registration restored

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