Facts of the Case

Mis. Narayan Traders, a proprietorship at Secunderabad, had its GST registration cancelled by an order dated 18.03.2024 in Form GST REG-19, pursuant to a show cause notice dated 05.03.2024 in Form GST REG-17. The petitioner challenged both the notice and the cancellation order as void, illegal and violative of Articles 14, 19(1)(g), 21 and 265 of the Constitution, seeking restoration of registration. At the hearing, no one appeared for the petitioner, but the Senior Standing Counsel for CBIC placed the relevant documents on record and himself suggested a remand.

Issues Involved

  1. Whether the cancellation order under Form GST REG-19 could be sustained where the Department itself conceded the need for a fresh opportunity to the taxpayer.
  2. Whether the matter should be remitted to the proper officer to allow filing of a reply before a fresh order is passed.

Petitioner's Arguments

  • The show cause notice and the cancellation order were void, illegal, arbitrary and issued without jurisdiction, and were also devoid of signature, contrary to natural justice and Articles 14, 19(1)(g), 21 and 265 of the Constitution.

Respondent's Arguments

  • The Senior Standing Counsel for CBIC, on instructions, placed the documents annexed to the show cause notice on record and submitted that the matter may be remanded to the proper officer so the petitioner could appear and file its reply.
  • Copies of the annexed documents would also be served on the petitioner's counsel to enable an effective reply.

Court Order / Findings

  • Acting on the Department's own submission, the Court set aside the cancellation order dated 18.03.2024 passed in Form GST REG-19.
  • The matter was remitted to the proper officer for a fresh decision after giving the petitioner an opportunity to furnish a reply to the show cause notice within a reasonable time, rather than deciding the constitutional challenge on merits.
  • The writ petition was disposed of with no order as to costs.

Important Clarification

  • Where the Department itself concedes that a taxpayer was not properly served with the material relied upon in a cancellation notice, courts readily remand the matter rather than adjudicating validity questions on merits.
  • Registration cancellation orders passed without effective service of the underlying show cause documents are vulnerable to being set aside for breach of natural justice.

Sections Involved

  • Central Goods and Services Tax Act, 2017 and Telangana State Goods and Services Tax Act, 2017 – jointly govern registration and its cancellation.
  • Form GST REG-17 and Form GST REG-19 – prescribed forms for show cause notice and order of cancellation of registration respectively.

Decision – In Favour of

Decided in favour of the assessee. The cancellation order was set aside and the matter remitted for fresh decision after a proper opportunity to reply.

Case Details

Court: High Court for the State of Telangana at Hyderabad
Case No.: Writ Petition No. 20025 of 2025
Coram: Hon'ble the Chief Justice Aparesh Kumar Singh and Hon'ble Mr. Justice G.M. Mohiuddin
Date of Order: 14.11.2025

Link to Download the Order

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