Mudassir Ahmed vs. Union Of INDIA

WP/20586/2026HC KarnatakaGSTCNR KAHC01044992202617 July 2026Bench: B M SHYAM PRASAD4 pages

For Petitioner: SRI. PUNITH C., ADVOCATEFor Respondent: SRI.JEEVAN J NEERALGI., ADVOCATE

AI SummaryAllowed

Facts

The petitioner challenged an order cancelling his GST registration, arguing that the preceding show cause notice failed to cite specific reasons for the proposed cancellation, only generally referring to the Central Goods and Services Tax Rules, 2017. Furthermore, the impugned cancellation order was passed without considering the petitioner's reply, which had highlighted the defect in the show cause notice.

Held

The High Court found the show cause notice defective for lacking specific reasons and the cancellation order invalid for not considering the petitioner's reply. Consequently, the Court quashed both the show cause notice and the order for cancellation of GST registration, while allowing the authorities to initiate fresh proceedings if justified.

Key Issues

The key legal issues were the validity of a show cause notice for GST registration cancellation that lacks specific reasons, and whether a subsequent cancellation order is sustainable if passed without considering the taxpayer's reply.

Sections Cited

Central Goods and Services Tax Rules, 2017

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - HC-KAR CNR: KAHC010449922026 NC: 2026:KHC:36828 WP No. 20586 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 20586 OF 2026 (T-RES) BETWEEN: MUDASSIR AHMED SON OF MUNEER AHMED, AGED ABOUT 30 YEARS, RESIDING AT NO. 2806, 2ND PHASE, 2ND STAGE, RAJIV NAGAR, MYSURU- 570019. AND ALSO AT 3208/10, A2M, 6/A2, B.T. MILL ROAD, MANDI MOHALLA MYSURU- 570021 PROPRIETOR OF M.A. TRADERS. REGISTERED UNDER CGST ACT. …PETITIONER (BY SRI. PUNITH C., ADVOCATE) AND: 1. UNION OF INDIA DEPARTMENT OF REVENUE AND FINANCE, KARTAVYA BHAVAN-1, NEW DELHI- 110001. Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010449922026 NC: 2026:KHC:36828 WP No. 20586 of 2026 2. CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMES (CBIC) 4TH BLOCK, KUMARA PARK WEST, SHESHADRIPURAM, BENGALURU- 560020 REPRESENTED BY ITS CHAIRMAN. 3. SUPERINTENDENT OF CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC), S1 AND S2, VINAYA MARGA, SIDDHARTHA NAGAR, MYSURU- 570011. …RESPONDENTS (BY SRI.JEEVAN J NEERALGI., ADVOCATE) THIS WP IS FILED UNDER ARTICELS 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 24.06.2026, VIDE REFERENCE NO-ZA29062185087Z PASSED BY THE RESPONDENT NO.3 AS PER ANNEXURE-A, BY ALLOWING THE WRIT PETITION. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR CNR: KAHC010449922026 NC: 2026:KHC:36828 WP No. 20586 of 2026

ORAL ORDER

The petitioner's grievance is with the Order for Cancellation of GST Registration dated 24.06.2026 [Annexure-A]. Sri Punith C., the learned counsel for the petitioner, and Sri Jeevan J. Neeralgi, a learned Standing Counsel for the respondents, are heard. The petitioner is served with Show Cause Notice dated 12.06.2026 [Annexure-D], and this Notice does not cite the reason for the proposition to cancel the GST registration except referring to the provisions of the Central Goods and Services Tax Rules, 2017. The petitioner has responded by the Reply dated 22.06.2026 [Annexure-E] requesting for revocation and stating that the Show Cause Notice is defective as it contains no reason. The impugned Order for Cancellation of GST Registration is without reference to this reply. As such, this Court is of the opinion that there must be interference to quash not just the Order of Cancellation of GST Registration but HC-KAR

CNR: KAHC010449922026 NC: 2026:KHC:36828 WP No. 20586 of 2026

also the Show Cause Notice but without prejudice to the authorities to commence proceedings if the circumstances so justify. The petition is allowed accordingly. (B M SHYAM PRASAD) JUDGE

SA Ct:sr

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.