2025 (4) TMI 1572 - HC - GST

Rejection of application made by the writ petitioner for voluntary cancellation of its Goods and Services Tax - no reason provided in SCN - Violation of principles of natural justice - HELD THAT - The impugned order fails to assign any reason whatsoever and which may have indicated what could have possibly weighed upon the respondents in not acceding to the prayer for voluntary cancellation. The impugned order dated 20 November 2024 is hereby quashed. The application for cancellation as made shall consequently be taken up for consideration afresh and be disposed of by the competent authority in accordance with law. Petition allowed.

Summary

The Delhi High Court, in W.P.(C) 17762/2024, quashed the impugned order dated 20 November 2024 that rejected the petitioner's application for voluntary cancellation of GST registration. The Court observed that the order "fails to assign any reason whatsoever" and merely stated the petitioner's reply was "not found to be satisfactory" without elaboration, rendering the rejection unsustainable. The Court held that the application must be reconsidered "in accordance with law" by the competent authority. The writ petition was allowed, and all parties' rights and contentions on merits were kept open.