08.04.2022- GST Registration Cannot Be Cancelled Due To mistake of Counsel – Gujarat High Court

The Hon’ble High Court of Gujarat vide its order dated: – 23rd March 2022 in the matter of M/s Dilip Kumar Chandulal & 1 other(s) Vs. State of Gujarat & 1 other(s) in R/Special Civil Application No. – 4340 of 2022 directed the respondent authorities to restore the GST registrations of the petitioners as it was cancelled due to a mistake committed by the consultant.

The petitioners preferred the writ application before the Hon’ble High Court praying for quashing and setting aside the order of cancellation of registration certificate and seeking directions to the authorities for restoring the same.  It was also prayed for directing the respondent authorities to refund the amount of tax deposited by the petitioner due to a glitch in the GST portal allowing such payment of tax despite the petitioners registrations have been cancelled.  Also, prayed for directing the respondents to restore the registration certificate immediately during the pendency of the petition.


  • The consultant of the petitioners wanted to cancel the registration of the HUF. However, inadvertently, the consultant instead of inserting the registration number of HUF inserted the registration number of the proprietorship.
  • As a result, the GST registration of the proprietorship got cancelled. Despite the fact the GST registration got cancelled, the returns filed were accepted.


  • The Hon’ble High Court after considering the submissions, facts of the case and taking note of its interim order dated 03.2022 observed that the proprietorship registration under GST got cancelled due to an inadvertent mistake committed by the consultant.
  • The Hon’ble Court observing as above, directed the respondent to immediately look in to the matter and make sure the order cancelling the registration is recalled and the original registration under GST of the petitioner is restored.
  • Further the Hon’ble Court held that for a mistake of consultant, the dealer under the act should not be made to pay such a heavy price like ‘cancellation of registration’
  • It was further directed by the Hon’ble Court to provide the copy of the order to the Ld. AGPs’ appearing on behalf of the respondents to co-ordinate with the concerned authority and to convey it to recall the cancellation order and restore the original registration.

The Hon’ble High Court disposed of the writ application in the above terms.

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