2024 (4) TMI 945 - HC - GST

Validity Of Show Cause Notice issued defective - cancellation GST registration - HELD THAT - This Court does not interdict a Show Cause Notice and delegates the authorities to adjudicate the Show Cause Notice, however, we note that the subject Show Cause Notice itself is defective and does not give any details or particulars. The Show Cause Notice in the reasons column has merely extracted the provisions of law. It states that the petitioner has issued invoices or bills without supply of goods or services, however, no details of invoices, bills or non-supply of goods or services has been mentioned in the Show Cause Notice. In view of the fact that the Show Cause Notice is bereft of any details and suffers from infirmities that go to the root of the cause, we are not exercising the power of remit and directing the proper officer to re-adjudicate the Show Cause Notice. Thus, we quash the same. The impugned Show Cause Notice dated 12.10.2022 is accordingly set aside. Petition is disposed of in the above terms.

Summary

Issues involved: Impugning a Show Cause Notice proposing cancellation of GST registration due to alleged violations.

Summary:
The petitioner challenged a Show Cause Notice dated 12.10.2022 proposing cancellation of GST registration. The petitioner's counsel highlighted the lack of clarity regarding the issuing authority and the suspension of the petitioner's business activities. The Notice alleged wrongful invoicing without actual supply of goods or services, leading to misuse of input tax credit. However, the Notice lacked specific details of the alleged infractions, such as invoices or bills involved. The Court noted the deficiencies in the Notice, deeming it vague and insufficient for a proper response. Consequently, the Court quashed the Show Cause Notice due to its fundamental flaws, allowing the authorities to issue a revised Notice with comprehensive particulars and a chance for the petitioner to present their case. The judgment clarified that the Respondents retained the right to pursue tax recovery measures, including retrospective cancellation of GST registration, in accordance with the law. Ultimately, the petition was disposed of based on the aforementioned grounds.