In a recent ruling, the Madras High Court directed a taxpayer to seek statutory remedy by filing a revocation application after the cancellation of their GST ( Goods and Services Tax ) registration on allegations of suspicious transactions reflected in the petitioner’s bank records and documents uploaded on the GST portal.
The petitioner had approached the Court challenging the cancellation order dated 09.01.2025, contending that the decision was made without due consideration of their reply and without granting a personal hearing.
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The petitioner’s counsel argued that a show cause notice dated 09.10.2024 had suspended the registration, and a detailed reply was filed on 22.11.2024. Meanwhile, the petitioner had also filed W.P. No. 38716 of 2024, wherein the Court had earlier directed the GST department on 18.12.2024 to consider the petitioner’s reply and pass a reasoned order.
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However, despite this judicial direction, the department proceeded to cancel the registration without considering the reply or affording the petitioner an opportunity for a personal hearing, which the counsel submitted was a clear violation of principles of natural justice.
On the other hand, the Advocate representing the department contended that the reply had indeed been considered but also admitted that the department was unaware of the Court’s previous order due to its non-availability on the record at the time. She further submitted that the cancellation was based on multiple suspicious transactions detected in the petitioner’s bank account and discrepancies found in the portal submissions.
Justice Krishnan Ramasamy, after hearing both sides and examining the records, observed that if the transactions were in fact genuine, the petitioner had the option to file a revocation application under the prescribed procedure.
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The Bench stated that such matters could be resolved effectively through the statutory remedy, provided the petitioner furnishes all necessary documents to establish the genuineness of the transactions.
Thus, the Court disposed of the writ petition with a directive that the petitioner will make a revocation application along with the supporting documentation. The department shall issue a notice of three days for personal hearing on the acceptance of the application and thereafter give a reasoned order within two weeks from the hearing, in the manner prescribed by law and after affording opportunity to the petitioner.
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