GST Registration Cancelled Without DIN: Andhra Pradesh High Court Sets Aside Order

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Case Name

M/s. Yasaswi Services vs. The Additional Commissioner (ST), Appellate Authority, Vijayawada & Others (High Court of Andhra Pradesh, Amaravati)

Writ Petition No: 24429 of 2024

Date: 19th February 2025

Key Takeaways

• DIN Requirement: Any notice or order under the GST Act must contain a Document Identification Number (DIN). If it doesn’t, the notice/order is invalid.
• Natural Justice: The taxpayer must be given proper notice and an opportunity to be heard before cancellation of registration.
• Precedent Affirmed: The court followed earlier decisions (notably, M/s. Cluster Enterprises vs. The Deputy Assistant Commissioner (ST)-2, Kadapa and Sai Manikanta Electrical Contractors vs. The Deputy Commissioner, Special Circle, Visakhapatnam) that non-mention of DIN invalidates proceedings.
• Remand for Fresh Proceedings: The cancellation and related orders were set aside, and the matter was sent back to the authorities to follow due process.

Issue

Was the cancellation of GST registration valid when the show cause notice did not contain a DIN and was not properly served, violating principles of natural justice?

Facts

• Parties:
• Petitioner: M/s. Yasaswi Services, represented by its proprietor, Mr. Chennupati Haranadh Kumar.
• Respondents: Additional Commissioner (ST), Appellate Authority, Vijayawada; Assistant Commissioner (ST), Penamaluru; State of Andhra Pradesh; Union of India.
• Timeline:
• 05.07.2023: Show cause notice issued to the petitioner for cancellation of GST registration.
• 21.08.2023: Order passed cancelling the registration.
• Petitioner claims he never received the show cause notice and only learned of the cancellation later.
• 21.08.2024: Petitioner files an appeal with a delay of 255 days.
• 27.08.2024: Appeal rejected as the delay exceeded the condonable period under Section 107 of the GST Act (only up to 30 days beyond the three-month limit can be condoned).
• Petitioner files this writ petition challenging both the cancellation and the rejection of his appeal.

Arguments

Petitioner (M/s. Yasaswi Services)

• The show cause notice did not contain a DIN, as required by law and CBIC Circular No. 128/47/2019-GST dated 23.12.2019.
• The notice was not served, violating principles of natural justice.
• The cancellation order, based on this defective notice, is arbitrary and unconstitutional (violates Articles 14, 19(1)(g), and 21 of the Constitution).
• The delay in appeal was due to lack of knowledge about the proceedings.

Respondents (Tax Authorities)

• The Government Pleader admitted that the show cause notice did not contain a DIN.
• The appeal was rightly rejected as the delay was beyond the statutory limit that could be condoned under Section 107 of the GST Act.

Key Legal Precedents

• M/s. Cluster Enterprises vs. The Deputy Assistant Commissioner (ST)-2, Kadapa
• Held that non-mention of a DIN in notices/orders under GST law makes such proceedings invalid, based on CBIC Circular No. 128/47/2019-GST dated 23.12.2019.
• Sai Manikanta Electrical Contractors vs. The Deputy Commissioner, Special Circle, Visakhapatnam
• Reaffirmed that orders without a DIN must be set aside.
• Section 107 of the GST Act, 2017
• Limits the time for filing an appeal and the period for which delay can be condoned.

Judgement

• The High Court found that the show cause notice dated 05.07.2023 did not contain a DIN, and this defect made the notice and all subsequent proceedings (including the cancellation order) invalid.
• The court set aside both the show cause notice and the cancellation order.
• The matter was remanded to the tax authorities to issue a fresh notice (with DIN) and provide the petitioner a proper opportunity to be heard.
• Since the cancellation order was set aside, the rejection of the appeal became irrelevant.
• The writ petition was disposed of without costs.

FAQs

Q1: Why was the GST registration cancellation set aside?

A: Because the show cause notice did not have a DIN, which is mandatory, and was not properly served, violating principles of natural justice.

Q2: What is a DIN and why is it important?

A: DIN stands for Document Identification Number. It is a unique number required on all communications from GST authorities to ensure authenticity and traceability. Notices/orders without DIN are considered invalid.

Q3: What happens next for M/s. Yasaswi Services?

A: The authorities must start the cancellation process afresh, this time issuing a proper notice with a DIN and giving the petitioner a fair chance to respond.

Q4: What if someone else receives a GST notice without a DIN?

A: Based on this and previous judgments, such a notice is invalid and any action based on it can be challenged in court.

Q5: Does this case mean all late appeals will be accepted?

A: No. The court did not condone the delay in appeal; it set aside the cancellation for procedural defects. The law on appeal deadlines remains unchanged.