GST SCN Sent to Old Address After Cancellation of Registration Invalid: Bombay HC Quashes Revisional Order [Read Order]

In a recent ruling, the Bombay High Court held that a GST show cause notice (SCN) sent to an old address after cancellation of registration is invalid, and any revisional order passed without proper service amounts to a breach of natural justice.

Dipak Metal Industries (Proprietor Rahul Raj), the petitioner, filed a writ petition challenging the revisional order dated 22 July 2024 passed under Section 108 of the CGST/MGST Act, 2017, by which the petitioner’s GST registration was retrospectively cancelled from 12 August 2017, the date of initial registration.

The petitioner’s counsel argued that the revisional order was passed without serving any show cause notice or granting an opportunity of hearing. The counsel submitted that the SCN dated 1 July 2024 was sent to an outdated address, even though the department already had the correct Ahmedabad address, as reflected in the earlier voluntary cancellation order dated 22 June 2022, which took effect from 31 May 2022.

The department’s counsel argued that the petitioner had furnished incorrect addresses and had attempted to mislead the department. They submitted that emails and communications were sent to the registered address, and the department had made proper attempts at service. The counsel pointed out that the petitioner could not now claim lack of notice when he himself had provided confusing details.

The Division Bench comprising Justice M.S. Sonak and Justice Advait M. Sethna observed that the issue in question was not the allegation of fraud but the validity of service. The court explained that the department had already used the Ahmedabad address while communicating the earlier cancellation order in June 2022, yet the revisional SCN was sent to the old address that had become irrelevant after cancellation.

There was no effective service of the SCN dated 1 July 2024, and the revisional order passed on 22 July 2024 was unsustainable.

The court set aside the revisional order for breach of natural justice and allowed the department to re-serve the SCN at the correct address or through the petitioner’s counsel. The petitioner was directed to file a reply within four weeks of receiving the notice, and the revisional authority was asked to grant a hearing and pass a reasoned order in accordance with law.

The court also directed that the earlier cancellation order dated 22 June 2022 stands revived and must be reflected on the GST portal. The writ petition was allowed with no order as to costs.

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