Facts of the Case

M/s Shivam Kumar, a proprietorship (GSTIN 10DIKPK0699Q1ZO) based in Jamui, Bihar, failed to furnish GST returns for a continuous period of six months. A show cause notice dated 15.01.2023 was issued in Form GST REG-17 proposing cancellation of registration, granting 30 days to reply. The petitioner did not avail this opportunity, and the registration was cancelled ex parte on 30.03.2023. The petitioner's subsequent appeal before the Appellate Authority was also rejected. The petitioner then approached the Patna High Court, seeking quashing of both the cancellation order and the appellate rejection on grounds of natural justice, and in the alternative, sought directions permitting delayed filing of a revocation application on payment of dues.

Issues Involved

  1. Whether the cancellation of GST registration for continuous non-filing of returns, where the assessee did not respond to the show cause notice, warrants interference by the High Court under Article 226.
  2. Whether an alternative direction can be given permitting the assessee to seek restoration of registration on payment of tax, interest, penalty and late fee, despite the writ challenge failing on merits.

Petitioner's Arguments

  • The show cause notice and the ex parte cancellation order were non-speaking and passed without providing sufficient opportunity of hearing, in violation of principles of natural justice.
  • The cancellation and its confirmation in appeal ought to be quashed, or in the alternative, the petitioner should be permitted to file a delayed application for revocation of the cancelled registration.

Respondent's Arguments

  • The Department was not called upon to file a detailed reply, as the Court found the petitioner had itself failed to respond to the show cause notice within the 30 days granted.
  • The record showed that the petitioner had not availed the remedy of filing a reply before the cancellation order was passed.

Court Order / Findings

  • The Court found that the petitioner had failed to furnish returns for a continuous period of six months, and despite being granted 30 days to respond to the show cause notice, did not avail that opportunity.
  • The Appellate Authority had already rejected the petitioner's appeal, and the Bench found no prima facie case made out to interfere with the impugned action of the respondents.
  • The writ petition was accordingly disposed of without interference with the cancellation order, but the Court left open a limited window: if any legal provision permits the authorities to accept a belated return with fine, damages or interest, the petitioner could approach the concerned authority with a detailed application, which the authority was directed to examine on its merits.

Important Clarification

  • Continuous non-filing of GST returns for six months is valid ground for cancellation of registration under Section 29 read with Form GST REG-17, and courts will not ordinarily interfere in writ jurisdiction where the assessee failed to utilise the opportunity to reply to the show cause notice.
  • Even where a writ challenging cancellation fails on merits, courts may still leave open the possibility of the assessee approaching the department for restoration on payment of outstanding dues, if any enabling provision exists.

Sections Involved

  • Section 29(2), CGST Act, 2017 — empowers cancellation of registration for continuous non-filing of returns.
  • Form GST REG-17, CGST Rules, 2017 — show cause notice format for proposed cancellation of registration.
  • Section 30, CGST Act, 2017 — revocation of cancellation of registration on satisfaction of prescribed conditions.

Decision – In Favour of

The decision is in favour of the Department. The Court declined to interfere with the cancellation of GST registration, though it left open a limited avenue for the petitioner to seek relief through a fresh application before the tax authority.

Case Details

High Court of Judicature at Patna; Civil Writ Jurisdiction Case No. 13176 of 2025; Coram: Hon'ble The Chief Justice (P.B. Bajanthri, CJ) and Hon'ble Mr. Justice Alok Kumar Sinha; Order dated 07.10.2025.

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