M/S Owais Traders (Trade Name) Mohmood Javed (Legal Name ) vs Union Of India

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
1 WP-42176-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR

BEFORE
HON'BLE SHRI JUSTICE ALPESH Y. KOGJE,
CHIEF JUSTICE
&
HON'BLE SHRI JUSTICE VIVEK JAIN
nd
ON THE 2 OF NOVEMBER, 2026
WRIT PETITION No. 42176 of 2026
CNR No.: MPHC010749062026
M/S OWAIS TRADERS (TRADE NAME) MOHMOOD JAVED (LEGAL
NAME )
Versus
UNION OF INDIA AND OTHERS
Appearance:
Shri Mukesh Agrawal - Advocate for the petitioner.

ORDER
Per: Hon'ble Shri Justice Alpesh Y. Kogje, Chief Justice
The present petition under Article 226 of the Constitution of India has been
filed challenging the order dated 07.9.2026 (Annexure P-7) passed by the
respondent No.4. By the said order, the registration of the petitioner under Central
Goods and Services Tax Act, 2017 (for short ‘CGST Act') has been cancelled by
exercising powers under Section 29 of the said Act.
2. The counsel for the petitioner has argued that though the petitioner has a
statutory remedy of appeal under the CGST Act, so also to apply for revocation
under Section 30, but in the present case, the business of the petitioner has come
to a standstill by cancellation of CGST registration, which is in gross violation of
basic principles of natural justice. The petitioner is only seeking a fair opportunity
to be heard as per the provisions of CGST Act. The impugned orders having been
Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
2 WP-42176-2026
passed in utter violation of principles of natural justice and denial of fair

opportunity to the petitioner before cancellation of CGST registration, the writ
petition before this Court is maintainable as no factual questions are involved at
this stage and the petitioner is only seeking a remand to the Proper Officer. The
Proper Officer may hear the petitioner and then pass an order after adhering to
principles of natural justice as contemplated under first proviso to Section 29 (1)
of CGST Act.
3. Learned counsel for the petitioner has submitted that the show cause
notice for cancellation of registration dated 16.07.2026 was issued to the
petitioner vide Annexure P-4 and he was directed to file a reply. He was also
warned that if he does not file a reply or does not appear at the time of personal
hearing, then an ex-parte order may be passed. However, no date and time of
personal hearing was set out in the notice. The petitioner had filed reply on
27.07.2026. However, without personally hearing the petitioner, straight-away, by
order dated 07.9.2026, the registration was cancelled. The authority did not even
fix the date for personal hearing, which was contemplated to be granted as per the
Show Cause Notice.
4. It is, therefore, argued that the impugned order be set aside and directions
be issued to the Proper Officer to hear the petitioner in terms of provisions of
Section 29 of CGST Act and then pass a proper order.
5. Per contra, learned counsel for the respondents has vehemently
supported the impugned orders and submitted that the authorities were not bound
to provide personal hearing to the petitioner and there was no hurdle in passing an
order without fixing the date of personal hearing. It is however contended that if
this Court passes an order of remand, then the authorities shall provide personal
hearing and pass a fresh order after considering reply of the petitioner.
Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
3 WP-42176-2026
6. Upon hearing counsel for the rival parties and on perusal of the record, it

is seen that the show cause notice for cancellation was issued on 16.7.2026
alleging that the Taxpayer was found non-existant at the registered Principal place
of business, and no business activity was observed in the said premises. The
notice was replied by the petitioner on 27.7.2026, as accepted in the impugned
order also. As per the show cause notice dated 16.7.2026, a time limit of 7
working days was set out to file reply to the notice. No date for personal hearing
was fixed, but it was mentioned that if he fails to appear for personal hearing at
the appointed date and time, his case shall be decided ex-parte on the basis of
available records and merits. However, this notice, though contemplated an
opportunity of personal hearing, but actually did not contain any venue, date and
time of such personal hearing.
7. Thereafter, without ever fixing the matter for any personal hearing, the
impugned order has been passed on 07.9.2026.
8. It appears to be a glaring case of failure of principles of natural justice
and the Proper Officer has exhibited utterly hasty and hurried manner in passing
the impugned orders.
9. The proviso to Section 29 (1) of CGST Act contains a clear provision to
grant opportunity of being heard to the assessee, which is as under:-

"Provided that the proper officer shall not cancel the
registration without giving the person an opportunity of
being heard"
10. A Division Bench of this Court in W.P. No. 21659 of 2022 (M/s Ultra
Steel Vs. State of Madhya Pradesh & Ors.) has considered the meaning and
purport of expression ‘opportunity of being heard’ as appearing in pari-materia
provisions of Sections 29 and 30 of SGST Act in the following manner:-
Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
4 WP-42176-2026
"10. Meaning thereby that affording of opportunity of being
heard is a pre-condition for exercising the power of
cancellation of registration. The expression “opportunity of
being heard” has been explained time and again by various
decisions of the Apex Court as well as this Court and other
High Courts to include the following components:

(a) furnishing of reason along with supporting
material to the assessee on the basis of which the
registration is proposed to be cancelled;
(b) the grant of sufficient opportunity by way of
personal appearance or otherwise as the case may
be (depending upon the textual and contextual
statutory provisions) to the assessee to respond in
writing;
(c) in case no material is supplied or insufficient
reasons are given in the show cause notice and
the assessee seeks proper reasons and material,
then the Revenue is obliged to extend the time for
filing reply by furnishing proper reasons and
supporting material;
(d) Revenue should also take into account certain
circumstances, which may be beyond the control
of assessee where extension of time ought to be
given considering the seriousness and urgency of
reasons assigned for extension;
(e) the minimum period after service of a valid or
proper show cause notice, for submission of reply
by the assessee is prescribed as seven days, which
is extendable on the discretion of the Proper
Officer for justified reasons to be recorded in
writing;
(f) in case assessee within seven days or the
extended time fails to file any response in
writing, then the Proper Officer is free to pass
appropriate order; and
(g) in case, assessee submits reply in writing,
then the same isto be considered by passing an
appropriate speaking orderby the competent
authority u/S.30 containing sufficientreasons to
enable the assessee to avail the remedy ofappeal
u/S.107.
10.1 Similar affording of reasonable opportunity
is stipulated while deciding an application for
revocation of cancellation of registration u/S.30."
Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
5 WP-42176-2026
11. It is settled in law that where there is glaring failure of principles of

natural justice, then alternative remedy is not an absolute bar. Even otherwise, this
petition has not been pressed on merits, but has been pressed on the anvil of denial
of opportunity of hearing and prayer has been made to remand the matter back to
the Proper Officer to pass a lawful order after hearing the petitioner. Therefore,
the petitioner need not be relegated to avail the remedy of statutory appeal.
12. In the present case, the Proper Officer did contemplate providing
opportunity of personal hearing in the show cause notice, and also warned of
consequences of not appearing in personal hearing. However, despite that, he did
not fix any date, time or venue for personal hearing before passing the cancellation
order.
13. In view of the reasons above, we have no doubt that the order of
cancellation of registration (Annexure P-7) suffers from infirmity and illegality, in
as much as it violates the principles of natural justice (audi alteram partem).
Cancellation of registration under CGST Act has serious civil consequences on the
business of the petitioner and such an order was not expected to be passed by
violating not only the necessary principles of natural justice, but also the
mandatory statutory provisions as laid down in Sections 29 of CGST Act that
ensure fair opportunity to the assessee/Taxpayer.
14. Therefore, the impugned order Annexure P-7 stands quashed. The
Proper Officer shall take fresh decision on the show cause notice for cancellation
of registration, that has been placed on record as Annexure P-4.
15. The Proper Officer shall take into consideration the reply to show cause
notice (Annexure P-5) and also grant opportunity of personal hearing to the
petitioner for a date to be fixed by the Proper Officer. The petitioner is also set at
liberty to file any further material and documents before the Proper Officer as are
Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM

NEUTRAL CITATION NO. 2026:MPHC-JBP:88595
6 WP-42176-2026
required to meet out his case, but before the date fixed for personal hearing. Let

decision on the show cause notice for cancellation be taken afresh within 30 days
of submission of copy of this order before the Proper Officer.
16. With the aforesaid directions, the petition stands allowed and disposed
off.
(ALPESH Y. KOGJE)
(VIVEK JAIN)
CHIEF JUSTICE
JUDGE
rj

Signature Not Verified
Signed by: RAJESH KUMAR
JYOTISHI
Signing time: 11/4/2026
12:09:26 PM