2024 (8) TMI 947 - HC - GST

Cancellation of Goods and Service Tax (GST) registration - It is apparent from the impugned SCN that the same does not provide any specific reason for proposing to cancel the petitioner s GST registration - violation of principles of natural justice - HELD THAT - It is apparent from the impugned SCN that the same does not provide any specific reason for proposing to cancel the petitioner s GST registration. The impugned SCN has merely reproduced Rule 21(b) of the Central Goods and Services Tax Rules, 2017 (hereafter the CGST Rules). The impugned SCN also does not indicate as to which bill or transaction is alleged to be in non-compliance of the statutory provisions. Although, Rule 21(b) of the CGST Rules provides for the cancellation of the GST registration in case the tax payer issues the invoice or bill with out the supply of goods or services in violation of the provisions of the CGST Act. However, the Proper Officer has failed to specify as to which invoice / bill has been allegedly issued by the petitioner without the supply of goods or services. No document is annexed with the impugned SCN which provides any clue as to which allegation is sought to be raised. In the present case, the impugned SCN fails to meet the requisite standards of the show cause notice. Thus, the impugned SCN is liable to be set aside. The impugned SCN is set aside. The respondents are directed to restore the petitioner s GST registration forthwith. It is clarified that this order will not preclude the proper officer from initiating any fresh proceedings, if warranted, in accordance with law - the present petition is allowed.

Summary

The High Court set aside the show cause notice issued to the petitioner regarding the cancellation of their GST registration due to lack of specific allegations and failure to meet the standards of a show cause notice. The respondents were directed to restore the petitioner's GST registration immediately.