2023 (9) TMI 397 - HC - GST

Cancellation of GST registration of petitioner - registration obtained by means of fraud, wilful misstatement or suppression of facts - HELD THAT - It is apparent from the impugned SCN that apart from alleging that the registration was obtain by fraud, wilful misstatement or suppression of facts which was also the ground on which the petitioners GST registration was cancelled in the earlier round it does not indicate any specific reason(s) for proposing cancellation of the petitioner s GST registration. The impugned SCN is incapable of eliciting any meaningful response as it does not indicate as to what is the fraud allegedly perpetuated by the petitioner or the wilful misstatement allegedly made by the petitioner. The impugned order is set aside as it is not informed by reason. The impugned SCN is also set aside - Petition allowed.

Summary

Issues Involved:
The judgment involves the cancellation of GST registration u/s 29(2)(e) on grounds of fraud, wilful misstatement, or suppression of facts without providing specific reasons for cancellation.

Impugned Show Cause Notice (SCN) and Order:
The petitioner challenged the show cause notice dated 30.06.2023 and the subsequent order dated 08.08.2023 cancelling the GST registration effective from 20.07.2022. The impugned order did not provide any clear reasons for the cancellation of registration.

Petitioner's Position:
The petitioner, an individual carrying on business under a sole proprietorship concern, contested the cancellation of GST registration. The petitioner requested an address update and had previously faced cancellation of registration, which was later revoked. Despite restoration, a new SCN was issued followed by another cancellation.

Judicial Findings:
The court noted that the impugned order lacked reasoning and failed to specify the grounds for cancellation. The SCN did not provide specific details regarding the alleged fraud, wilful misstatement, or suppression of facts by the petitioner, making it impossible for the petitioner to respond meaningfully. As a result, the court set aside both the impugned order and the SCN due to lack of clarity and reasoning.

Conclusion:
The court allowed the petition, setting aside the impugned order and SCN. The petitioner's GST registration cancellation was deemed invalid due to the absence of clear reasons provided by the authorities.