Feel Good Timber vs. The Commissioner Central Goods And Service Tax Dehradun

Facts

The petitioner, Feel Good Timber, had its GST registration cancelled effective from 08.11.24 by an order dated 17.06.25. The petitioner filed an application for revocation of this cancellation on 04.09.25. Subsequently, on 06.10.25, a Show Cause Notice was issued to the petitioner, requiring clarification on their revocation application. The impugned order, dated 03.12.2025, rejected the revocation application solely on the ground that the petitioner failed to reply to the Show Cause Notice. The petitioner contends that the Show Cause Notice lacked clear reasons for rejection and that they were not provided an opportunity for a personal hearing, despite the notice mentioning it. They also argue that their specific submissions in the revocation application, denying fraud, misstatement, suppression, or violations of Section 16 or Rule 86B, were not addressed.

Held

The Court held that the impugned order dated 03.12.2025, rejecting the petitioner's application for revocation of GST registration, was unsustainable. The primary ground for rejection was the petitioner's failure to reply to the Show Cause Notice. However, the Court noted that no date for personal hearing was fixed after the issuance of the Show Cause Notice. Crucially, the respondent-department ought to have considered the grounds raised by the petitioner in their revocation application. Since this was not done, the Court found the order to be in violation of procedural fairness. The Court quashed the impugned order. The ratio decidendi is that an application for revocation of GST registration cannot be rejected solely for non-compliance with a Show Cause Notice without addressing the merits of the revocation application and ensuring adherence to principles of natural justice, including providing an opportunity for a hearing. The Court directed the petitioner to appear before the proper officer on 10th September, 2026, with relevant records, who would then consider the evidence, hear the petitioner, and pass an appropriate order.

Key Issues

1. Whether the order rejecting the revocation of GST registration is valid when the Show Cause Notice did not provide clear reasons for rejection and the petitioner was not afforded a personal hearing, as required by principles of natural justice and impliedly by the notice itself? (Question of law and fact, turning on principles of natural justice and procedure under GST law). Petitioner's arguments: The respondents failed to disclose clear reasons in the Show Cause Notice for proposing to reject the revocation application. The petitioner was not given an opportunity for a personal hearing, despite the Show Cause Notice indicating one. The impugned order failed to address the petitioner's specific contentions in the revocation application, such as the absence of willful fraud, misstatement, suppression, or violations of Section 16 or Rule 86B of the GST Act. Respondents' arguments: The judgment records no specific arguments made by the respondents.