The Hon’ble Karnataka High Court in M/s. Flex Enterprises & Anr. v. Superintendent of Central Tax [Writ Petition No. 13708 of 2026 c/w Writ Petition No. 13791 of 2026 dated June 12, 2026] quashed the orders cancelling the GST registrations of the Petitioners along with the consequential suspension of the registrations, on the ground that the Show Cause Notices were issued on the basis of verification reports which were fundamentally defective – one containing the photograph of an unrelated property and the other being completely blank – and held that such defective reports cannot form the basis of ‘reasons to believe’ as mandated under Rule 22(1) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”). Accordingly, the proceedings were restored to the stage of Show Cause Notice with liberty to the Petitioners to file supporting documents for fresh consideration.
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