Termico Engineers And Erectors Private Limited vs. Deputy Commissioner Of Revenue, State Tax, Baharampur Charge And Ors.
Held
The High Court quashed and set aside the show cause notice for cancellation of registration and the suspension. It directed the petitioner to submit a detailed reply to the original notice issued under Section 61 read with Rule 99, and ordered the respondent to pass a reasoned order after affording a personal hearing, in light of the judgments cited.
Facts
The petitioner, engaged in works contracts, challenged a show cause notice for cancellation of GST registration, which also suspended their registration, citing an alleged mismatch of excess input tax credit (ITC) of over Rs. 8 crore. The authorities initiated action based on discrepancies in GSTR 3B, deeming the ITC inadmissible under Section 16(2)(c) read with Section 41 of the CGST Act.
Key Issues
Whether the authorities can suspend and issue a show cause notice for cancellation of GST registration based on alleged ITC mismatch without proper verification and action against the supplier, and before a final adjudication of the ITC claim.
Sections Cited
Section 151, Rule 56(18), Section 16(2)(c), Section 41, Section 76(1), Section 76(2), Section 61, Rule 99
AI-generated summary — verify with the full judgment below
2026
Item No.05 Ct. No. 10 BR WPA 18141 of 2026 Termico Engineers & Erectors Pvt. Ltd. -vs- Deputy Commissioner of Revenue, State Tax, Baharampur Charge & Ors.
Mr. Sandip Choraria, Mr. Akash Chakraborty, Mr. Gunja Verma …. For the petitioner
Ms. Manasi Mukherjee, Mr. Prithu Dudhoria, Mr. Chandrachur Lahiri, Mr. Nikunj Berlia … for the State
Affidavit of service filed by the petitioner be kept on record.
Mr. Prithu Dudhoria and Mrs. Manasi Mukherjee is also engaged in this matter to assist the learned Government Pleader, Mr. Nikunj Berlia. Accordingly, their appearance is to be regularized from the Office of the learned Government Pleader.
In the present writ petition, the petitioner has challenged the issuance of the show cause notice dated 22.5.2026 for cancellation of registration, wherein the registration stood suspended with effect from 1.4.1993. 4. It is submitted that the
The judgment continues below.
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