Madras HC Ruling Offers Relief on Missed GST SCN Reply
If your GST registration was cancelled without a proper chance to respond, you’re not alone. A recent Madras High Court judgment has granted taxpayers a second opportunity—even if the Show Cause Notice (SCN) wasn’t replied to on time.
Here’s what you need to know about the case, legal interpretation, and what it means for your GST compliance.
Case Summary: M/s Sree Gokulam Chits v. Addl. State Tax Officer
Citation: 2025 TAXSCAN (HC) 1138
Court: Madras High Court
Order Date: June 2025
Facts of the Case:
- The assessee’s GST registration was cancelled due to non-response to an SCN.
- The assessee claimed they weren’t aware of the SCN due to non-receipt of proper notice.
- An ex-parte cancellation order was passed under Section 29 of CGST Act.
- Assessee approached the High Court seeking restoration.
What the Madras High Court Held
“Natural justice must prevail even in digital proceedings under GST.”
Key Observations:
- The court agreed that the taxpayer was not given a fair chance to be heard.
- Cancellation of registration impacts a business’s survival, so a procedural opportunity is critical.
- The Court set aside the cancellation order, subject to:
- The taxpayer filing a reply within 15 days.
- Full compliance with GST return filings and dues.
📌 Legal Reference:
Section 29 of the CGST Act allows for cancellation of registration due to non-compliance. But Rule 22(3) requires a hearing before final cancellation.
Why This Judgment Matters
If your GST registration got cancelled and you missed replying to the notice, this ruling:
- Provides legal ground to seek restoration
- Recognises technical lapses (like email issues or missed dashboard updates)
- Emphasises natural justice even in digital SCNs
- Reinforces taxpayer rights under procedural law
What You Can Do if GST Registration Is Cancelled
Step-by-Step: How to Seek Relief
- Check GST Portal → Look for any pending SCNs or cancellation orders
- Download the Order → Verify grounds and date of issue
- File Writ Petition → In your jurisdictional High Court citing procedural lapse
- Attach Evidence → Show why you couldn’t reply (e.g., server issue, no email alert)
- Submit Returns and Dues → Courts often require compliance as a condition
Expert View: A CA’s Advice on SCN Handling
“Even if the SCN comes via email or portal, treat it like a physical legal notice. Don’t delay response. If missed, seek relief immediately—delay weakens your case.”
– CA Ravi Subramaniam, Indirect Tax Expert, Chennai
Related Cases You Should Know
| Case Title | Court | Relief Granted |
|---|---|---|
| Pinstorm Technologies Pvt Ltd | Bombay HC | Cancellation order quashed due to non-service of SCN |
| Mahadev Enterprises | Gujarat HC | Opportunity to file returns and restore registration |
| Sree Gokulam Chits | Madras HC | Time-bound reply allowed with conditions |
GST Compliance Tip
✅ Enable SMS & Email Alerts on GST Portal
Often, SCNs are uploaded without a direct email. Go to the ‘My Profile’ section on GST portal and verify contact details.
FAQ Section
Q1: Can I still respond to an old SCN if my registration is already cancelled?
Yes, based on High Court rulings, you can seek legal relief if natural justice was denied.
Q2: Do I need to file past GST returns before restoration?
Yes. Courts often make restoration conditional upon return filing and payment of dues.
Q3: Can I get automatic restoration from the GST department?
No. You must either respond to the SCN in time or approach the High Court post-cancellation.
Final Thoughts
This Madras High Court order is a welcome relief for taxpayers affected by GST registration cancellations due to missed SCNs. But prevention is better—stay alert, monitor the portal, and never ignore even digital notices.
If your registration is cancelled and you’re unsure of next steps, Efiletax can help you file replies, draft writs, and restore your GST status.
🔗 Need help with GST restoration? Click here to get expert help from Efiletax
📖 Also read: Top Reasons Why GST Registrations Get Cancelled
Summary
GST registration cancelled? Madras HC allows a delayed reply to SCN under natural justice, providing relief if cancellation was ex-parte. File reply within 15 days and comply with dues.