GST Update

 Desk of CA. Praveen Sharma – 985 Series (CAPS) 

MADRAS HIGH COURT IN THE CASE OF U.E. Enterprises Rep by its Proprietor Mujibur Rahman

The Petitioner challenged the order dated 18.03.2026 cancelling GST registration retrospectively from 17.12.2022, issued pursuant to a notice in Form GST REG-17.

The Petitioner submitted that a reply to the Show Cause Notice dated 06.03.2026 was filed on 09.03.2026, however, the same was not considered before passing the cancellation order. No documentary proof of online submission was provided, though a copy of the reply was later sent by post on 16.03.2026.

The Department alleged wrongful availment and passing of ineligible ITC and initiated further proceedings, including issuance of summons and proposed action under Section 74 and penalty provisions.

Considering the facts, the Court directed that the cancellation order be treated as suspension of registration, pending fresh adjudication. The reply filed by the Petitioner shall be considered on merits, and a reasoned order shall be passed within two weeks, after granting an opportunity of hearing.

The Department is at liberty to continue investigation and initiate appropriate proceedings as per law.

The writ petition was disposed of accordingly, without costs.

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