Bombay High Court
Amlitex Trading Private LimitedversusAssistant Commissioner of State Tax
- Decided
- Disposal
- Disposed Off
Holding
The cancellation order is set aside for lack of reasoned findings and failure to consider the petitioner’s submissions.
Summary
The petitioner, Amitex Trading Private Ltd., challenged the order dated 29 June 2026 that cancelled its GST registration on the ground of alleged violation of Rule 21(b) for issuing invoices without supply. The petitioner argued that earlier show‑cause notices on the same issue had been withdrawn and that the authority failed to consider this in the present notice and order, thereby breaching principles of natural justice. The High Court noted that the impugned order was not reasoned and did not address the petitioner’s submissions, including the claim of procedural impropriety. Consequently, the Court directed the petitioner to file a detailed reply to the show‑cause notice and appear before the Assistant Commissioner, after which a fresh order must be passed. The Court set aside the cancellation order and disposed of the writ petition.
Issues considered
- Whether the cancellation of GST registration under Rule 21(b) can be effected without proper consideration of the petitioner’s earlier show‑cause notices and submissions.
- Whether the authority complied with the principles of natural justice by providing a reasoned order.
Legislation cited
- CGST Rules, 2017 — s. 21(b)
Subjects
- GST registration cancellation
- Rule 21(b)
- show cause notice
- natural justice
- procedural fairness
- CGST Act
Judgment
3. WP 11338-2026.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.11338 OF 2026
Amitex Trading Private Limited …. Petitioner
Versus
Assistant Commissioner of State Tax
And Ors. … Respondents
…..
Mr. Devendra B. Harnesha a/w Adv. Paras B. Harnesha for the
Petitioner.
Smt. Shruti Vyas, Addl. G.P. a/w Mr. A.R. Deolekar, A.G.P. for
Respondent- State.
…..
CORAM: M.S. KARNIK &
SANDESH D. PATIL, JJ.
DATED : 8th SEPTEMBER 2026
P.C.
1. Heard the learned Counsel for the Petitioner.
2. The order under challenge is dated 29 th June 2026, which is at
Exhibit ‘O’ at page 153. The said order of cancellation of registration
was passed pursuant to the show cause notice which was issued on
22nd June, 2026. The said show cause notice reads thus :-
“To
Registration Number (GSTIN/UIN) : 27AASCA3568L1ZY
AMITEX TRADING PRIVATE LIMITED
265/1, Godown No. K-9/1, Ground Floor, OM HARIHAR COMPLEX,
vasai Road, Bhiwandi, Thane, Maharashtra, 421302
RaJesh Chittewan, PS 1/4
3. WP 11338-2026.doc
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:
1. Rule 21(b)- person issues invoice or bill without supply of goods or
services or both in violation of the provisions of the Act, or the rules
made thereunder
Remarks:
You are hereby directed to furnish a reply to the notice within seven
working days from the date of service of this notice.
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
08/09/2021.
Kindly refer the supportive document attached for case specific details.
Place: Maharashtra
Date: 22/06/2026”
3. The Petitioner filed the reply to the show cause notice on 25 th
June, 2026. In the reply to the show cause notice it is stated that
previous show cause notices were issued on the basis of which the
show cause notice came to be dropped. For the very same reasons,
the present show cause notice has been issued, which is
impermissible. This aspect has not at all been taken into
consideration by the Authority. We further find that in the reply to
the show cause notice it is stated that the earlier show cause notice
was dropped, hence there was no propriety in issuing a fresh show
RaJesh Chittewan, PS 2/4
3. WP 11338-2026.doc
cause notice for cancellation of GST Registration without any
detailed information of further queries.
4. We find that this aspect has not at all been considered in the
impugned Order. The impugned order reads thus :
“To
Name: AMITEX TRADING PRIVATE LIMITED
Address: 265/1, Godown No. K-9/1, Ground Floor, OM HARIHAR
COMPLEX, vasai road, Bhiwandi, Thane, Maharashtra, 421302
GSTIN/UIN: 27AASCA3568L1ZY
Application Reference Number (ARN): AA2706261429007
Date: 25/06/2026
Order for Cancellation of Registration
This has reference to show cause notice issued dated 22/06/2026.
Whereas reply to the show cause notice has been submitted vide
AA2706261429007 dated 25/06/2026and you/ your authorized
representative attended the personal hearing, made a written/oral
submission during personal hearing; and whereas, the undersigned
has examined your reply to show cause notice as well as
submissions made at the time of personal hearing and is of the
opinion that your registration is liable to be cancelled for following
reason(s):
1. Rule 21(b)- person issues invoice or bill without supply of goods
or services or both in violation of the provisions of the Act, or the
rules made thereunder
Remarks:
Including circular transactions i.e. Sale & Purchase with same
parties.
The effective date of cancellation of your registration is
24/06/2019.
2. Kindly refer to the supportive document(s) attached for case
specific details.
3. It may be noted that a registered person furnishing return under
sub-section (1) of section 39 of the CGST Act, 2017 is required to
RaJesh Chittewan, PS 3/4
3. WP 11338-2026.doc
furnish a final return in FORM GSTR-10 within three months of the
date of this order.
4. You are required to furnish all your pending returns.
5. It may be noted that the cancellation of registration shall not
affect the liability to pay tax and other dues under this Act or to
discharge any obligation under this Act or the rules made
thereunder for any period prior to the date of cancellation whether
or not such tax and other dues are determined before or after the
date of cancellation.
Place: Maharashtra
Date: 29/06/2026”
5. The impugned order thus is not at all the reasoned order. The
learned Addl. G.P. for Respondent No.3-State, tried to justify the
impugned order. The contention raised by the Petitioner in reply to
the show cause notice are not at all dealt by the Authority.
6. The Petitioner shall appear before the Assistant Commissioner
of State Tax and file a detailed reply to the show cause notice dated
22nd June, 2026. The Petitioner shall appear on 23 rd September 2026
at 11.00 a.m. Reply to be filed within a period of one week from
today. After hearing the Petitioner and upon considering the
response to the show cause notice, a fresh order be passed within a
period of four weeks from the date of appearance. The impugned
order is set aside. Petition dispose of.
(SANDESH D. PATIL, J.) (M.S. KARNIK, J.)
RaJesh Chittewan, PS 4/4
Digitally signed by
RAJESH RAJESH VASANT
VASANT CHITTEWAN
CHITTEWAN Date: 2026.09.10
14:20:09 +0530
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