Facts of the Case

The petitioner, running a goatery business, obtained GST registration in Form GST REG-06 on 13.06.2023 under the CGST Act, 2017. On 10.06.2024, the department issued a show cause notice for cancellation alleging violation of Rule 10A read with Rule 21(d) of the CGST Rules, 2017 (failure to furnish bank account details), giving only seven days to reply and suspending the registration with immediate effect. The petitioner claimed the notice, being uploaded only on the portal, escaped her notice. An ex-parte cancellation order followed on 04.07.2024 — before even thirty days had elapsed from the notice — and the petitioner's subsequent attempts to furnish bank details and to apply for revocation were both rejected by the portal as time-barred.

Issues Involved

  1. Whether a show cause notice for cancellation on the ground of Rule 10A non-compliance must be issued in Form GST REG-31 with a mandatory thirty-day response period under Rule 21A(2A).
  2. Whether cancellation before the expiry of the statutorily mandated period, and using the wrong notice form, vitiates the cancellation order.

Petitioner's Arguments

  • The show cause notice, issued only through the portal without individual communication, escaped notice and gave merely seven days to respond instead of the statutorily mandated period.
  • Subsequent attempts to furnish bank details and apply for revocation were both blocked by the GST portal on limitation grounds, leaving the petitioner without effective recourse.

Respondent's Arguments

  • The department's counsel appeared and defended the cancellation on the basis of the petitioner's admitted non-furnishing of bank account details as required under Rule 10A, without addressing the specific form and timeline defects raised.

Court Order / Findings

  • Examining Rule 21A(2A), the Court found that non-compliance with Rule 10A specifically requires suspension with intimation in Form GST REG-31 and a thirty-day period to explain, whereas the petitioner was served a notice in Form GST REG-17 and given only seven working days — and the impugned order was passed even before the thirty-day period from the notice date had elapsed.
  • Holding that when a statute prescribes a thing to be done in a particular manner, it must be done in that manner and no other, the Court found both the wrong notice form and the truncated timeline to be violations of natural justice and of Rule 10A itself, and set aside and quashed the show cause notice dated 10.06.2024 and the cancellation order dated 04.07.2024.
  • The department was directed to restore the petitioner's GST registration granted on 13.06.2023, with no order as to costs.

Important Clarification

  • Cancellation of GST registration for non-compliance with Rule 10A (failure to furnish bank details) must strictly follow Rule 21A(2A) — a show cause notice in Form GST REG-31, not REG-17, and a mandatory thirty-day period to respond before any suspension can mature into cancellation.
  • Passing a cancellation order before the prescribed period has even elapsed, or using the wrong statutory form, renders the cancellation void for breach of the settled principle that a statutorily prescribed manner of doing an act must be strictly followed.

Sections Involved

  • Rule 10A, CGST Rules, 2017 – requirement to furnish bank account details within thirty days of registration.
  • Rule 21(d) and Rule 21A(2A), CGST Rules, 2017 – grounds and procedure for suspension/cancellation of registration for Rule 10A non-compliance, including the prescribed Form GST REG-31 and thirty-day period.

Decision – In Favour of

In favour of the assessee — the show cause notice and cancellation order were quashed and restoration of GST registration directed.

Case Details

Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh); WP(C)/6789/2025; Coram: Hon'ble Mr Justice Manish Choudhury; Date: 05.12.2025.

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