Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present petition again reveals the confusion that is prevalent in various Show Cause Notices and orders issued/passed by the GST department in respect of cancellation of the Petitioner's GST Registration.

3. The brief facts of the case are that firstly, the Petitioner had obtained the GST identification No. 07AAQHM2514M1ZU w.e.f. 7th June 2019. On 30th March, 2021 an application for cancellation of the GST registration was filed by the Petitioner on the ground that the Petitioner was suffering from pancreatic illness. In response to the said application for cancellation of registration, a query was raised by the GST Department on 31st March, 2021 to the following effect:

“Notice for Seeking Additional Information/ Clarification/ Documents relating to Application for Cancellation

This is with reference to your Cancellation application filed vide ARN AA070321082555B Dated - 30/03/2021

The Department has examined your application and is not satisfied with it for the following reasons:

Cancellation Details - Others (Please specify) - As per the returns, there is mismatch of Rs,315576/between GSTRI and GSTR 3B.

2. A disproportionately large amount of ITC was availed for payment of tax. Please clarify the same.

You are directed to submit your reply by 08/04/2021

If no response is received by the stipulated date, your application is liable for rejection. Please note that no further notice/ reminder will be issued in this matter.”

4. No reply was filed by the Petitioner to the said notice. Thereafter, on 9th April, 2021the said application of the Petitioner was rejected on the ground that no reply was received. However, on the same date i.e., on 9th April 2021, a Show Cause Notice was again issued by the GST Department on following ground:

“Show Cause Notice for Cancellation of Registration

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the 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.

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

You are hereby directed to appear before the undersigned on 12/04/2021 at 12:46 PM

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Please note that your registration stands suspended with effect from 09/04/2021.”

5. The Petitioner did not reply to the said Show Cause Notice and accordingly, vide order dated 20th May, 2021 the Petitioner’s GST Registration was cancelled retrospectively w.e.f. 15th June, 2019.

6. The Petitioner being aggrieved by the said order of cancellation preferred an appeal against the same before the Appellate Authority which was also dismissed on the ground of delay vide order dated 20th May, 2025.

7. Today, the submission on behalf of the GST Department by Ms. Narain, ld SSC is that vide notice dated 31st March, 2021 in respect of the Petitioner’s application for cancellation, it was alleged that the Petitioner had availed disproportionately large amount of Input Tax Credit. Thus, since the Petitioner had not filed any reply to the said notice the registration was liable to be cancelled with retrospective effect.

8. Heard the ld. Counsels for the parties and perused the documents placed on record. The Court has examined the matter. Clearly, the Petitioner himself wanted cancellation of its registration. However, the final order is of cancellation with retrospective effect. In the opinion of the Court both the orders passed by the GST Department show a complete non-application of the mind by the concerned offic