Bhavpreet Plasto Chem India Directed to Pursue Appellate Remedy Under CGST Act
In a significant decision, the Delhi High Court has disposed of the writ petition filed by Bhavpreet Plasto Chem India regarding the cancellation of its Goods and Services Tax (GST) registration. The firm had approached the court challenging the cancellation of its GST registration, claiming that its non-existence and non-functionality were wrongly assessed during an inspection.
The bench, comprising Justices Anil Kshetarpal and Harish Vaidyanathan Shankar, observed that the cancellation of the GST registration by the Superintendent, Range-41 CGST, North Delhi Division-Bawana, was based on findings that the firm was not operational. The petitioner had been issued multiple Show Cause Notices (SCNs) but failed to respond, leading to the cancellation order on October 15, 2025.
The court noted that the final order passed by the Appellate Authority on April 30, 2026, is appealable under Section 112 of the Central Goods and Services Tax Act, 2017. The petitioner sought the quashing of this order, along with the restoration of its GST registration. However, the court emphasized that the petitioner has the option to pursue an appellate remedy as per the provisions of the CGST Act.
During the proceedings, the respondent's counsel highlighted that the petitioner had been given adequate opportunity to present its case, including a second SCN issued on December 3, 2025, which also went unanswered. The court concluded that the petitioner could seek recourse through the appellate mechanism provided under Section 112 of the CGST Act.
The High Court disposed of the writ petition, granting the petitioner the liberty to explore the appellate remedy. The judgment underscores the importance of adhering to procedural requirements and responding to legal notices in a timely manner.
Bottom line:-
GST Registration - Cancellation of Goods and Services Tax Registration on grounds of non-existence and non-functionality of the firm - Writ petition disposed of with liberty to avail appellate remedy under Section 112 of the Central Goods and Services Tax Act, 2017.
Statutory provision(s): Central Goods and Services Tax Act, 2017 Sections 70, 107, and 112
