High Court orders to revive GST Number cancelled during All India Fake GST Registration Drive

Facts of the Case

The petitioner, M/s Friend Enterprises, had its GST registration cancelled retrospectively from August 16, 2020, following a show cause notice issued on June 30, 2023, that only cited an “All India Special Drive against Fake Registration” as the reason. After failing to respond to the notice, the petitioner’s subsequent application for revocation and a statutory appeal were both rejected by the authorities, leading the petitioner to challenge the retrospective cancellation in court.

Issue of the Case

Whether the GST registration could be cancelled retrospectively when the show cause notice failed to specify reasons for the action or warn the petitioner about the retrospective nature of the cancellation.

Decision of the Court

The Court sided with the petitioner and cancelled all previous orders against them. The judges held that the authorities were unfair because they failed to clearly explain the specific reasons for the retrospective cancellation or share the supporting evidence, which is a legal requirement. While the previous actions were overturned, the Court gave the authorities permission to restart the process as long as they follow the law and ensure the petitioner is properly informed.