Facts of the Case

Joswbs Private Limited challenged an ex-parte order cancelling its GST registration under Section 29(2)(b) of the GST Act, 2017, passed in Form GST REG-19 dated 25.07.2024, and the consequential appellate order dated 26.09.2025 which dismissed its appeal filed under Section 107 as being beyond limitation. The petitioner's case was that no physical or oral hearing was afforded before cancellation, that adverse material was not confronted to it, and that the underlying show cause notice dated 13th May 2024 did not clearly specify before which officer the petitioner was required to appear, on account of which it could not appear and its registration came to be cancelled.

Issues Involved

  1. Whether the show cause notice preceding cancellation of registration was legally sufficient when it did not clarify before whom the petitioner had to appear.
  2. Whether the resultant ex-parte cancellation and the subsequent time-barred rejection of the statutory appeal could be sustained.

Petitioner's Arguments

  • The ex-parte cancellation order was passed in gross violation of natural justice, without any physical/oral hearing and without adverse material being confronted to the petitioner.
  • The appeal against cancellation was wrongly dismissed solely on the ground of limitation without addressing the underlying defect.

Respondent's Arguments

  • No specific defence was pressed by the department once the Court noted the ambiguity in the show cause notice; the matter proceeded on the basis of the record as it stood.

Court Order / Findings

  • On perusal of the show cause notice dated 13th May 2024, the Court found it was not clear before whom the petitioner was required to appear, which explained the petitioner's non-appearance and the consequent cancellation.
  • The Court held that, for the ends of justice, the petitioner deserved another opportunity to present its case before the relevant officer.
  • The department was directed to issue a fresh show cause notice by email or registered post, following which the petitioner should appear, be granted a personal hearing, and appropriate orders passed within eight weeks.
  • The impugned cancellation order and the appellate order dismissing the appeal as time-barred were both quashed and set aside.

Important Clarification

  • A show cause notice preceding cancellation of GST registration must clearly identify the officer before whom the assessee is to appear; ambiguity on this count vitiates the resulting ex-parte cancellation.
  • Where the foundational notice itself is defective, an appeal dismissed on limitation grounds does not foreclose relief in writ jurisdiction — the Court can direct a fresh notice and a fresh opportunity of hearing instead.

Sections Involved

  • Section 29(2)(b), CGST Act, 2017 — cancellation of registration for contravention of provisions.
  • Section 107, CGST Act, 2017 — appeal to the appellate authority.
  • Form GST REG-19 — order for cancellation of registration.

Decision – In Favour of

The writ petition was allowed in favour of the Assessee; both the cancellation order and the appellate rejection were quashed, with directions for a fresh show cause notice, hearing, and time-bound order.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: WRIT TAX No. 1116 of 2025
Coram: Hon'ble Shekhar B. Saraf, J. and Hon'ble Prashant Kumar, J.
Date of Order: 14.10.2025

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