2022 (4) TMI 1144 - HC - GST

Cancellation of GST registration of petitioner - validity of SCN - SCN lacks material information - HELD THAT - The show cause notice is bereft on any material particulars or information. In the absence of any material particulars and the details, it is difficult for any individual to respond to such a vague show cause notice. Probably what the Authority is trying to convey is that earlier VAT/CST registration in case of writ applicant has been cancelled ab initio and therefore, the registration is not valid and not recognized in law. If such are the allegations, it is expected of the Authority to furnish some details in this regard. The impugned show cause notice has to be quashed and set aside and the same is accordingly quashed and set aside. If the Assistant Commissioner, Ghatak 1 (Ahmedabad), Range 1, Division 1, Gujarat, is of the view that the registration of the writ applicant herein is not valid and not recognized as per the provisions of the Act, it shall be open for him to issue a fresh show cause notice in a physical form and such fresh show cause shall contain all necessary information and details for the purpose of effectively responding to the same. Application disposed off.

Summary

Issues:
1. Validity of show cause notice for GST registration cancellation.

Analysis:
The judgment pertains to a writ application where the petitioner, a proprietor of a proprietary concern, received a show cause notice dated 29.02.2022, calling for reasons why the GST registration should not be cancelled. The notice lacked material particulars and details necessary for a proper response, specifically regarding the earlier cancellation of VAT/CST registration. The court noted the vagueness of the notice and the difficulty it posed for the petitioner to provide a meaningful reply. Consequently, the court quashed and set aside the impugned show cause notice. The court directed that if the Assistant Commissioner believes the registration is invalid, a fresh show cause notice with comprehensive information should be issued for a proper response. The judgment disposed of the writ application, making the rule absolute.

This judgment primarily focuses on the procedural validity of the show cause notice issued for the cancellation of GST registration. The court emphasized the importance of providing sufficient details in such notices to enable the affected party to respond effectively. The lack of material particulars in the original notice rendered it vague and inadequate for a meaningful reply. By quashing the notice and instructing the issuance of a detailed fresh notice if necessary, the court upheld the principles of natural justice and fair administrative procedure. The judgment highlights the significance of procedural fairness in administrative actions, especially concerning statutory registrations like GST.