Section 29 of the CGST Act, 2017— Cancellation of GST Registration -– The petitioner challenged the order dated 10.05.2022, whereby, the registration was cancelled. The court observed that order is in complete violation of the directions issued in case of Aggarwal Dyeing, where the Court had been very categorical that unless the technical glitches are improvised, no such notice through the portal be issued. The detailed guidelines which had been given to the authority concerned for making the changes in the portal also have not been paid any heed to. The notices were issued in the month of April, 2022 and thereafter also are subsequent to the decision of Aggarwal Dyeing. There appears to be no initiative for making any changes in the portal. The Coordinate Bench of this Court had given a serious warning against one of the officers instead of referring the matter under the Contempt of Court Act. That ought to have been a sufficient wake up call for the department. The Courts have been giving directions after directions all these months and same had not been followed, let the guiding instructions to all the officers be issued in a week’s time.

Held that:- The Hon’ble High Court set aside the order and restored the registration of the petitioner forthwith and permitted the respondent to issue fresh show cause notice, in accordance with law. The court imposed a cost of Rs.25,000/- which shall be borne by the department to be paid to the petitioner. Further directed the respondent No.1 to take up matter with the GSTN at the earliest.