GST Registration Cancelled for ITC Violation Without Reply: Calcutta HC Allows Revocation Plea [Read Order]

The Calcutta High Court has allowed a revocation plea of the petitioner before a proper officer in a matter related to the cancellation of his Goods and Services Tax (GST) registration.

The registration was cancelled due to the wrongful availing of Input Tax Credit (ITC) in violation of Section 16 of the Goods and Services Tax (GST) Act, 2017. The court didn't directly interfere with the cancellation order but preserved the petitioner’s right to seek revocation.

The Proper Officer cancelled the petitioner, Sk. Amir Chand’s GST registration on July 29, 2025. This followed a show‑cause notice dated April 3, 2025. The same alleged that the petitioner had wrongly availed of ITC.

The petitioner failed to respond to the notice. The cancellation order directed the petitioner to approach the High Court, seeking relief against the harsh outcome without a fair opportunity to present his case.

The petitioner’s counsel argued that the cancellation was disproportionate. It was also submitted that one of the family members of the petitioner had been suffering from a serious ailment, and as such, the petitioner was unable to respond to the notice to show cause within time.

It was further contended that these circumstances have to be considered and that an opportunity should be granted to present records and explanations before the Proper Officer.

The State authorities, on the other hand, defended the cancellation. It was contended that the order was validly passed after the petitioner failed to respond to the statutory notice.

Justice Om Narayan Rai noted that under Section 30 of the GST Act, read with Rule 23 of the GST Rules, a registered person whose registration has been cancelled can apply for revocation before the Proper Officer.

The Court observed that the petitioner had approached the High Court immediately after cancellation, within the period during which a revocation application could have been validly filed.

In this context, the Court held that while the writ petition itself would not be entertained, the petitioner should be granted liberty to file a revocation application within two weeks.

The Proper Officer was directed to treat such application as filed within time and to dispose of it within four weeks, strictly in accordance with law. Importantly, the Court clarified that it had not gone into the merits of the ITC violation, leaving all issues open for determination by the Proper Officer.

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