2023 (6) TMI 185 - HC - GST

Cancellation of GST registration of petitioner - impugned SCN does not specify any reason for proposing the cancellation of the petitioner s GST registration - time limitation - HELD THAT - Undisputedly, the impugned show cause notice is vague and fails to satisfy the necessary requirement of a valid show cause notice - there is merit in the petitioner s contention that the impugned show cause notice and any further orders passed pursuant thereto are liable to be set aside. The impugned order dated 23.08.2022 indicates that the petitioner s registration was cancelled for the reason that it was found to be non-existent. The petitioner s appeal against the said order was rejected as being barred by limitation. Although the impugned show cause notice is vague and liable to be set aside; however, the petitioner is now aware of the reason why its registration was cancelled. The impugned order dated 23.08.2022 and the Order-in-Appeal dated 19.04.2023 are set aside - Petition disposed off.

Summary

Issues involved:
The judgment involves the validity of a show cause notice calling for the cancellation of GST registration, the vagueness of the notice, the cancellation of registration due to non-existence, and the rejection of an appeal on grounds of limitation.

Validity of Show Cause Notice:
The petitioner challenged a show cause notice dated 09.06.2022, which lacked specificity in providing reasons for proposing the cancellation of GST registration, merely citing 'OTHERS'. The court found the notice to be vague and failing to meet the necessary requirements of a valid show cause notice. Consequently, the petitioner's contention was upheld, and it was deemed that the notice and subsequent orders should be set aside.

Cancellation of Registration due to Non-Existence:
The impugned order dated 23.08.2022 revealed that the petitioner's GST registration was canceled on the grounds of being non-existent. Despite the vagueness of the show cause notice, the petitioner became aware of the reason for the cancellation through the subsequent order. The court noted this development but emphasized that the petitioner should have the opportunity to respond to the allegation of non-existence.

Remand and Further Opportunity:
The petitioner's counsel requested a remand of the matter to allow the petitioner to address the allegation of non-existence before the concerned officer. The court agreed with this course of action. Consequently, the impugned order dated 23.08.2022 and the Order-in-Appeal dated 19.04.2023 were set aside. The petitioner was granted a two-week period to respond to the show cause notice, with the ground for cancellation being the non-existence of the petitioner. A personal hearing was scheduled for 20.06.2023 for the concerned officer to consider the petitioner's reply and make an informed decision.

Disposition:
In conclusion, the petition was disposed of with the directions outlined above, providing the petitioner with an opportunity to address the allegation of non-existence and respond to the show cause notice within the specified timeframe.