The Gujarat High Court has quashed a show cause notice for cancellation of registration, the cancellation order, the rejection of revocation application and the appellate order, holding that the authorities had impermissibly amalgamated different statutory provisions governing cancellation of registration and disallowing of ITC, and simultaneously asked the petitioners to pay tax and penalty through DRC-03 (which is voluntary) without issuing any show cause notice for disallowing ITC. The ruling by Justice A.S. Supehia and Justice Vaibhavi D. Nanavati in SCA No. 12791/2024 (Neptune Enterprise, decided 18.09.2026) found that the SCN proposed cancellation on the ground of registration obtained by ‘fraud, wilful misstatement or suppression of facts’, yet the order cancelling registration was passed within 12 days without waiting for the 15-20 days sought for producing documentary evidence. The rejection of revocation introduced new grounds about purchases from three dealers who had cancelled their registration suo motu, and the appellate authority tried to improve upon the original defect rather than recognising it.
- 2026-juristway.com-2658-HC(Gujarat)-GST | High Court of Gujarat | SCA No. 12791/2024 | 18.09.2026