The cancellation of GST registration without providing an adequate opportunity for a hearing violates principles of natural justice, warranting the quashing of such orders.

ORDER :

1. Heard learned advocate Mr. Sagar J. Shah for the petitioner and learned Assistant Government Pleader Ms. Shrunjal Shah for the respondents.

2. By this petition under Article 227 of the Constitution of India, the petitioner has challenged the order dated 30^th July, 2021 passed by the respondent No.3-Assistant Commissioner, Ghatak 75, Bhavnagar cancelling the GST Registration Certificate of the petitioner and the order dated 21.11.2024 passed by the respondent No.2-Deputy State Tax Commissioner, Bhavnagar dismissing the Appeal filed by the petitioner under Section 107 of the Gujarat Goods and Services Tax Act, 2017 on ground of limitation.

3. The brief facts of the case are as under :

3.1. The petitioner is engaged in business of ship material trading by purchasing raw material from old ships and selling them in the market and is registered under the provisions of the Gujarat Goods and Services Tax Act, 2017 (for short ‘the GST Act’).

3.2. The respondent No.3 issued a show- cause notice dated 22.07.2021 for cancellation of the registration with following reasons :

“Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax.”

3.3. The petitioner was directed to file the reply within the seven working days and appear on 30^th July, 2021 before the respondent No.3.

3.4. It appears that the petitioner submitted reply on 30^th July, 2021 online and without providing any opportunity of hearing, the respondent-Authority passed an ex-parte order dated 30^th July, 2021 whereby, the effective date of cancellation of the registration was stated as 01.07.2017.

4.1. Learned advocate Mr. Sagar Shah for the petitioner submitted that the petitioner has also filed an additional affidavit on 7^th July, 2025 affirmed on 4^th July, 2025 which reads as under :

“2. I state and submit that the petitioner is willing and ready to comply with the legal requirements by filing all the pending statutory returns and is further willing to discharge the liability arising therefrom, including tax, interest, penalty, and late fees, as computed in the calculation report.

3. That the petitioner undertakes to pay the aforesaid amounts, subject to verification and confirmation by the concerned respondent authority, without prejudice to the petitioner's rights and contentions in the present proceedings.”

4.2. It was submitted that in view of the decision of this Hon’ble Court in case of M/s. Aggrawal Dyeing & Printing vs. State of Gujarat,(2022) 137 Taxmann.com 332 (Guj.), the respondent-Authority has failed to give any reason while issuing the show-cause notice and without considering the reply filed by the petitioner on 30^th July, 2021, the order of cacellation or registration was passed.

4.3. It was submitted that the petitioner could not file the Appeal within the stipulated time period and therefore, the Appeal is also dismissed on the ground of delay.

4.4. It was therefore submitted that as held by this Court in case of M/s. Aggrawal Dyeing (Supra), the matter may be remanded back to the respondent No.3 to pass a fresh de-novo order after considering the reply filed by the petitioner and in view of the additional affidavit filed by the petitioner before this Court along with the computation of tax, interest, penalty, etc., to be paid by the petitioner as may be directed by the respondent No.3 in accordance with law.

5. In view of the above submissions, it would be germane to refer to the guidelines issued by the Co-ordinate Bench of this Court in the case of M/s. Aggrawal Dyeing (Supra), which read as under :

“18. Our final conclusion are as under:

18.1. Until the Department is able to devel