The Gauhati High Court has overturned the cancellation of GST registration of Huma Power & Tower Pvt. Ltd., holding that the tax authorities did not comply with the statutory procedure mentioned under the GST law before cancelling the registration.
The issue emerged after the issuance of an SCN by the state tax department in May 2025, alleging non-compliance with Rule 10A of the CGST Rules regarding the bank account details. Therefore, the GST registration of the company was cancelled on June 9, 2025, because no response had been submitted to the notice.
The petitioner argued before the Court that the notice was only uploaded on the GST portal and went unnoticed. It claimed that the department refused it a reasonable opportunity to regularise its bank account details and respond to the allegations.
Justice Manish Choudhury said that in cases involving alleged breach of Rule 10A, authorities must first suspend the registration and issue a notice in Form GST REG-31. This notice should grant the taxpayer 30 days to explain the non-compliance. However, in this case, the department issued a notice in Form GST REG-17 and allowed only 7 days for a response.
The Court said that authorities are required to follow the stipulated procedure under the law. On the failure to furnish the mandatory 30-day period and issuing the wrong form of notice, the department breached both the CGST Rules and the principles of natural justice.
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Subsequently, the High Court quashed the SCN and the cancellation order and asked the authorities to restore the GST registration of the company. The Court said that the restoration shall not impact any tax obligations or regulatory liabilities of the taxpayer.
| Case Title | Huma Power & Tower Pvt. Ltd. V/S State of Assam & Others |
| Case No. | Writ petition [c] NO. 2147/2026 |
| Counsel For Petitioner | Mr. S.K. Saha, Advocate |
| Counsel For Respondent | Mr B. Gogoi, Standing Counsel, Finance & Taxation Department |
| Gauhati High Court | Read Order |
