Bombay High Court Orders Restoration Of GST Registration Of Bi-Chem India After Revenue Withdraws Suspension

The Bombay High Court has recently directed the Revenue to immediately restore the GST registration of Bi-Chem India Pvt. Ltd. after the department informed the court during the hearing that the suspension would be withdrawn and the registration made operational.

A division bench of Justices G.S. Kulkarni and Aarti Sathe was dealing with a writ petition filed by the company questioning the suspension of its GST registration, along with a show cause notice dated February 18, 2026, a recovery notice, and the provisional attachment of its bank accounts issued earlier that month.

Appearing for the company, the department suspended the registration and proceeded with recovery and attachment without proper application of mind and in breach of the principles of natural justice.

The action, it was submitted, was not in consonance with the provisions of the CGST Act and ran contrary to binding judicial precedents.

During the hearing, counsel for the Revenue sought time to obtain instructions on whether the lawful procedure had been followed before suspending the petitioner's registration. The assistant government pleader, on instructions from the department, stated that the suspension of the petitioner's GST registration would be withdrawn and the registration would be restored forthwith.

Recording the statement, the court directed that the suspension shall stand withdrawn and the petitioner's GST registration be immediately restored and made operational.

The court further directed that the petitioner must be given an opportunity of hearing on the show cause notice dated February 18, 2026, after which the authorities may take appropriate action in accordance with law.

In respect of the recovery notice dated February 3, 2026, the Court clarified that no recovery action shall be taken unless due procedure of law is followed and an appropriate order is passed after considering the petitioner's contentions.

Disposing of the petition, the Court kept all contentions of both sides open.

For Petitioner: Advocates Abhishek A Rastogi along with. Advcocates Pooja M. Rastogi along with Meenal Songire along with Aarya More, Chayank Bohra

For Respondent: AGP Amar Mishra, Sanjay Sonawane, Asst. Commissioner (D-108) Enforcement Branch, Mumbai.