Facts of the Case

M/s. Lotus Biotech was issued a show cause notice in Form GST REG-17 dated 03.09.2022 proposing cancellation of its GST registration. The petitioner submitted a reply dated 14.09.2022. However, the subsequent Order for Cancellation in Form GST REG-19 dated 22.10.2022, while itself recording that a reply dated 14.09.2022 had been received, went on to cancel the registration on the stated ground that no reply had been submitted to the show cause notice. Aggrieved, the petitioner approached the High Court of Andhra Pradesh.

Issues Involved

  1. Whether the cancellation order, which acknowledged receipt of the petitioner's reply yet proceeded as though no reply had been filed, was vitiated by a violation of natural justice.
  2. Whether the matter warranted being remitted for fresh consideration of the reply already on record, along with an opportunity of personal hearing.

Petitioner's Arguments

  • The Show Cause Notice and consequent cancellation order were illegal, arbitrary, in violation of natural justice and contrary to the CGST/APGST Acts, applicable Rules and Circulars, and violative of Articles 14 and 19(1)(g) of the Constitution.
  • The cancellation order itself recorded receipt of the petitioner's reply dated 14.09.2022, yet was passed on the contradictory footing that no reply had been submitted.

Respondent's Arguments

  • No specific defence was recorded distinct from supporting the validity of the impugned cancellation order.

Court Order / Findings

  • The Court noted that the cancellation order itself stated that a reply dated 14.09.2022 had been received against the show cause notice dated 03.09.2022, yet proceeded to cancel the registration on the ground that no reply had been submitted.
  • Holding this internal contradiction to constitute a clear violation of natural justice, the Court allowed the writ petition and set aside the cancellation order.
  • The authorities were left at liberty to pass fresh orders on the basis of the original show cause notice and the reply already given, after affording an opportunity of personal hearing.

Important Clarification

  • A cancellation order under Form GST REG-19 that itself records receipt of the taxpayer's reply but nonetheless proceeds on the premise that no reply was filed suffers from an internal contradiction amounting to a clear breach of natural justice, liable to be set aside without more.

Sections Involved

  • Form GST REG-17 — the show cause notice for proposed cancellation of registration.
  • Form GST REG-19 — the order effecting cancellation of registration.
  • Principles of natural justice under Articles 14 and 19(1)(g) of the Constitution, as applied to registration cancellation under the CGST/APGST Act, 2017.

Decision – In Favour of

Assessee. The cancellation order was set aside, with liberty to the authorities to pass a fresh order after considering the petitioner's reply and hearing it.

Case Details

High Court of Andhra Pradesh at Amaravati; Writ Petition No. 24753 of 2025; Coram: Justice R. Raghunandan Rao and Justice T.C.D. Sekhar; Order dated 17.09.2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.