Cancellation of GST Registration Quashed for Non-Speaking Order

Case Details:

• Case Title: Juri Bhuyan vs Union of India & Ors.

• Court: Gauhati High Court

• Case No.: WP(C)/1701/2025

• Category of Dispute: GST Registration Cancellation

• Date of Judgement: 01.05.2025

• Relevant Sections: Section 29(2)(c), Section 39 CGST Act, 2017; Rules 21, 22 of CGST Rules, 2017; Form GST REG-17, REG-19, REG-20

Facts of the Case

(Ref: Paras 1–6, 15–17)

1. The petitioner, a works contractor, obtained GST registration effective 01.07.2017.

2. On 27.08.2020, a SCN in Form GST REG-17 was issued for non-filing of returns for over six months; period not specified.

3. The petitioner claims she did not notice the SCN due to COVID-19 disruptions and business loss.

4. GST registration was cancelled on 09.09.2020 via a non-speaking order, allegedly referring to a reply and hearing which the petitioner denies attending.

5. Petitioner could not file revocation or appeal due to limitation expiry and approached court in March 2025.

Question(s) in Consideration

(Ref: Paras 9–14, 21–23)

1. Whether the cancellation order complied with Section 29(2)(c) of the CGST Act and Rule 22(3) of CGST Rules?

2. Whether absence of reasons in the cancellation order renders it illegal as a non-speaking order?

3. Whether delay in filing the writ petition bars relief when the cancellation order itself suffers from legal infirmity?

Observations of the Court

(Ref: Paras 18–24)

1. Rule 22 mandates issuance of a reasoned order in Form GST REG-19 while cancelling registration.

2. The SCN failed to specify exact months of default and omitted hearing details.

3. The impugned order contained no reasons for cancellation; it did not comply with Form GST REG-19 requirements.

4. Non-speaking orders violate principles of natural justice and statutory prescription to record reasons.

5. Even in absence of reply or appearance, the officer must pass a speaking order.

Judgement of the Court

(Ref: Paras 24–29)

1. The order dated 09.09.2020 was quashed for being non-speaking and passed without application of mind.

2. Matter remanded to SCN stage; petitioner given one month to:

   • File reply under Rule 22(2) read with Section 29(2)(c), or

   • File all pending returns and pay dues with interest, late fee, and penalty (if any) to seek dropping of proceedings under Rule 22(4).

3. Proper Officer directed to proceed as per law and pass final order within one month thereafter.

Between Fine Lines

• GST registration cancellation requires a reasoned (speaking) order.

• Even if dealer defaults in return filing, officer must follow procedure in Rule 22 and Form GST REG-19.

• Non-speaking orders are invalid, regardless of delay in approaching court.

• Remand allows assessee to regularise returns/payment to restore registration.

• Court prioritised statutory compliance over laches in filing writ.

Summary of Referred Cases

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