Gujarat High Court quashes GST registration cancellation for lack of reasons and violation of natural justice; directs fresh notice and hearing.

Case: Vraj Traders Through Proprietor Mr. Vrajesh Bhikhubhai Pansuriya v. State of Gujarat & Others
Citation: Special Civil Application No. ___ of 2025 (Gujarat HC)
Court/Bench: Gujarat High Court
Coram: Hon’ble Mr. Justice Pranav Trivedi
Date of Decision: 06-09-2025

Whether cancellation and refusal of revocation of GST registration, based on absence from principal place of business, without proper notice or reasons, is valid in law.

Petitioner registered under GST in February 2018, initially showing Ahmedabad as principal place of business.

Lease expired in 2019, and petitioner shifted operations to Junagadh, duly updated as additional place of business but failed to delete Ahmedabad.

GST registration was cancelled ex-parte on 16.06.2022 after a field visit; revocation was also rejected citing non-operation from declared principal place.

Appeal was dismissed without reasons, leading petitioner to challenge cancellation before the High Court.

The Court held that cancellation, revocation rejection, and appellate order were non-speaking, arbitrary, and in breach of principles of natural justice. Following the ratio in Agarwal Dyeing & Printing Works v. State of Gujarat, it quashed the orders dated 16.06.2022, 06.07.2022, and 22.09.2022, while granting liberty to the department to issue fresh notice with detailed reasons and to provide a fair hearing.

Orders affecting civil consequences must be reasoned and preceded by adequate opportunity of hearing; cancellation of GST registration without such compliance is invalid.

Businesses must promptly update GST registration details, including principal place of business, to avoid disputes. Authorities are bound to issue reasoned show-cause notices and grant hearing before cancellation. Professionals should ensure timely compliance and preserve all communication records to safeguard against ex-parte actions.