Morvi Nandan Healthcare Private Limited vs. State Of Chhattisgarh

Facts

The petitioner, Morvi Nandan Healthcare Private Limited, engaged in steel product trading, challenged a show-cause notice dated October 9, 2025, and a subsequent order dated October 27, 2025, by Respondent No. 2 (Superintendent, Central Excise and Central GST) cancelling its GST registration retrospectively from December 11, 2020. The cancellation was based on the petitioner not conducting business from its declared place of business. The petitioner argued that the show-cause notice lacked specific dates and times for personal hearing and that registration cannot be cancelled retrospectively. The respondents contended that physical verification confirmed the allegations, and the petitioner had an alternative remedy of revocation. The Court noted that the show-cause notice did not specify a date and time for personal hearing, and physical verification reports were not uploaded as required.

Held

The Court held that the show-cause notice dated October 9, 2025, was issued in contravention of Rule 22(1) read with Form GST REG-17, as it failed to specify the date and time for personal hearing, thereby violating the principles of natural justice. The Court also found that the physical verification reports, though conducted on August 21, 2025, and August 19, 2025, were not uploaded within the period stipulated by Rule 25 of the Rules of 2017, rendering the show-cause notice and final order contrary to the provisions of Rule 25. The Court dismissed the respondents' contention regarding the alternative remedy, citing the Supreme Court's decision in Godrej Sara Lee Ltd. vs. Excise and Taxation Officer-cum-Assessing Authority, which allows writ petitions where there is a violation of natural justice or the order is without jurisdiction. Consequently, the show-cause notice and the order of cancellation of registration were quashed. Respondent No. 2 was granted liberty to initiate fresh proceedings strictly in accordance with Rule 17 and Rule 25 of the CGST Rules, 2017.

Key Issues

1. Whether the show-cause notice dated October 9, 2025, issued by Respondent No. 2, is bad in law for failing to specify the date and time for personal hearing, thereby violating principles of natural justice under Rule 22(1) read with Form GST REG-17 of the Chhattisgarh Goods and Services Tax Rules, 2017? 2. Whether the order of cancellation of registration dated October 27, 2025, is invalid for being issued in contravention of Rule 25 of the Chhattisgarh Goods and Services Tax Rules, 2017, due to the non-uploading of physical verification reports within the stipulated period? Petitioner's Arguments: The petitioner contended that the show-cause notice was defective for not specifying the date and time for personal appearance, violating principles of natural justice. They also argued that there is no provision for retrospective cancellation of GST registration under Section 29 of the CGST Act, 2017, or the Rules. Reliance was placed on Nairson Multiventures (P) Ltd. vs. State of Chhattisgarh. The petitioner also argued that the physical verification reports were not uploaded as per Rule 25. Respondents' Arguments: The respondents argued that the petitioner had an alternative remedy of revocation and thus the writ petition was not maintainable. They asserted that the allegations were verified physically, and the show-cause notice and cancellation order were issued in accordance with Rule 22. They also stated that a communication dated October 3, 2025, was sent to the authority concerned.