Section 29 of the CGST Act, 2017 — Cancellation of Registration -- The petitioner challenged order cancelling the registration under Section 29 of the Act. The petitioner filed application for revocation under Section 30 of the and thereafter has filed an appeal under Section 107 of the Act and the same is pending consideration. The Counsel for the petitioner submitted that SCN should have been issued in Form GST REG-17, whereas the same was issued in Form GST REG-31. SCN is issued in a form containing vague details of the reasons for cancellation. He placed reliance upon the judgment of a Division Bench of the Gujarat High Court in Aggarwal Dyeing and Printing v. State of Gujarat. The court observed that Form GST REG-31 is one relatable to proceedings for suspension of registration and cannot be treated as a SCN under Rule 21 of the Rules, which requires the issuance of a notice in form GST REG-17. Moreover, it is also bad for the complete absence of any detail. It is clearly vague.

Held that:- The Hon’ble High Court quashed the order. The quashing of the impugned order of cancellation will not have the effect of absolving the petitioner of any fiscal liability. The petitioner will be required to file all defaulted returns together with tax, late fee, interest, penalty etc., within a period of two weeks.