The petitioner was denied a fair opportunity to be heard prior to the cancellation of GST registration due to procedural violations, while the appellate authority lacked the discretion to condone excessive delays in filing appeals.

JUDGMENT :

PRANAV TRIVEDI, J.

1. Heard Ms. Palak Devpura, learned advocate for the petitioner and Ms. Tanushree Shrimal, learned Assistant Government Pleader for the respondents.

2. Rule returnable forthwith. Ms. Tanushree Shrimal, learned Assistant Government Pleader waives service of notice of rule on behalf of the respondents. With the consent of the parties, the matter is taken up for final hearing today.

3. By way of present petition, the petitioner has challenged the legality and validity of the show-cause notice for cancellation of registration dated 02.02.2022, Order for Cancellation of Registration dated 21.02.2023 passed by the respondent No. 2 and the order-in-Appeal dated 04.12.2025 passed by the respondent No.3 (hereinafter referred to as ‘the impugned orders’ for short) under the provisions of Section 107 of the Central Goods and Service Tax(CGST)/ Gujarat Goods and Service Tax Act (GGST), 2017 (hereinafter referred to as ‘the Act’)

4. The brief facts of the case are that the petitioner is a proprietorship firm engaged in the business of manufacturing cake boxes and wooden cake bases made from plywood. For the said purpose, the petitioner got itself registered under the Act with registration no. 24LSOPS2490B1ZD with effect from 30.07.2021.

4.1. The petitioner had engaged a tax consultant to handle Goods and Service Tax compliance and was under a bona fide impression that returns were being filed in time. However, due to professional negligence and failure of the previous consultant, multiple returns remained unfiled, leading to issuance of the impugned show-cause notice by respondent No. 2 calling upon to reply as to why the registration should not be cancelled for the reasons of non-filing of GST returns for a continuous period, in terms of Rule 21A(2A) of the Central Goods and Service Tax (CGST) Rules, 2017 (for short “the rules”). The petitioner was directed to respond to the impugned show-cause notice within thirty days.

4.2. It is the case of the petitioner that the petitioner being unaware of the issuance of the impugned show-cause notice online, failed to submit its reply and on 21.02.2023, respondent No. 2 passed the impugned Order online for cancellation of registration retrospectively with effect from 31.07.2022 in FORM GST REG-19. The impugned Order does not record any reasons whatsoever for the cancellation of registration of the petitioner.

4.3 It is the case of the petitioner that the petitioner preferred an appeal on 13.08.2025 against the impugned Order under Section 107 (1) of the Act before Respondent No. 3 by submitting Form GST APL 01, indicating the fact of delay in filing of appeal beyond the limitation period provided u/s 107(4) of the Act and for which an acknowledgment in Form GST APL-02 was issued. Respondent No. 3 issued the notice for the personal hearing dated 20.11.2025, instructing the petitioner to be present on 27.11.2025.

4.4 Pursuant to the submissions made by the petitioner during the personal hearing dated 27.11.2025, respondent No. 3, vide the impugned Order-in-Appeal dated 04.12.2025, rejected the appeal of the petitioner on the ground that the appeal of the petitioner is not filed within the time limit prescribed under Section 107 of the Act. It is submitted that respondent Nos. 2 and 3 failed to take into consideration the judgment of this Court in the case of Aggarwal Dyeing & Printing Works v/s State of Gujarat (SCA No. 18860 of 2021 and other allied matters decided on 24.02.2022). Therefore, the petitioner is constrained to approach this Hon'ble Court by way of the present Petition.

5. Ms. Palak Devpura, learned