2024 (8) TMI 1033 - HC - GST

Cancellation of GST registration of petitioner - SCN does not provide any specific reason for proposing to cancel the petitioner s GST registration - Violation of principles of batural justice - HELD THAT - 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 without 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 is without the supply of goods or services has been allegedly issued by the petitioner. No document is annexed with the impugned SCN, which provides any clue as to which allegation is sought to be raised. The purpose of issuance of the show cause notice is to enable the noticee to respond to the allegations on the basis of which an adverse action is proposed. Absent of any specific allegation, the issuance of the show cause notice is rendered meaningless. In the present case, the impugned SCN fails to meet the requisite standards of the show cause notice. Accordingly, the present petition is allowed. The impugned SCN is liable to be set aside. The respondents are directed to restore the petitioner s GST registration forthwith. Petition is disposed off.

Summary

The High Court allowed the petition, set aside the show cause notice, and directed the respondents to restore the petitioner's GST registration immediately. The court clarified that the order does not prevent the proper officer from initiating new proceedings if necessary.