GST Update

Desk of CA Praveen Sharma – 910 Series (CAPS)

Madras High Court in the case of FM International

The Government Advocate accepted notice for the respondents and, with the consent of both sides, the writ petitions were heard and decided at the admission stage by a common order.

In the first writ petition, the petitioner challenged the GST registration cancellation order dated 10.12.2024, by which the registration was cancelled retrospectively from 01.11.2024 after issuance of a show cause notice to which no reply was filed.

The cancellation was made on the allegations of misrepresentation at the time of registration, non-existence of business at the declared place, and failure to file reply or appear for personal hearing.

The Court noted that the show cause notice contained only general allegations and did not provide supporting material or documents to substantiate the charges.

In the second writ petition, the petitioner challenged the appellate order dated 27.06.2025, which dismissed the appeal solely on the ground of non-filing of reply and treating the documents produced as unsatisfactory.

The Court observed that both the cancellation order and the appellate order were passed mechanically without proper reasoning or examination of the petitioner’s case on merits.

Accordingly, the High Court set aside both orders and remanded the matter to the proper officer to issue fresh notice, grant personal hearing, and pass a reasoned order within 15 days. Both writ petitions were disposed of without any order as to costs.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS