2023 (12) TMI 363 - HC - GST

Cancellation of petitioner s GST registration - cancellation on the ground that the registration obtained by means of fraud, wilful misstatement or suppression of facts - HELD THAT - The impugned SCN does not satisfy the rudimentary requirement of a show cause notice. In view of the above, the impugned order is void as having been passed in violation of the principles of natural justice. This is because the petitioner had no opportunity to respond to any allegation. The impugned order has been passed without affording the petitioner any opportunity to meet the allegations against it. The impugned order is also not informed by reason as it does not set out any ground for cancelling the petitioner s GST registration, save and except mentioning that it is pursuant to the impugned SCN. It is noted that there is a space for filling up the reasons, however, that space has been left blank. The respondent is directed to forthwith restore the petitioner s GST registration. It is clarified that this would not preclude the concerned authorities from initiating fresh proceedings albeit in accordance with the law - the impugned order as well as the impugned SCN are set aside - Petition disposed off.

Summary

Issues involved:
The judgment deals with the cancellation of GST registration based on a show cause notice lacking specific details and the violation of principles of natural justice.

Cancellation of GST registration:
The petitioner challenged the order cancelling their GST registration, which was based on a show cause notice (SCN) alleging registration obtained through fraud, wilful misstatement, or suppression of facts. The petitioner responded by explaining that the registration was obtained by uploading necessary documents, albeit blurred due to size restrictions. The court noted that the impugned SCN lacked specific details and failed to provide clear reasons for the proposed cancellation. It emphasized that a show cause notice should enable the respondent to respond to allegations to make an informed decision.

Violation of principles of natural justice:
The court held that the impugned SCN did not meet the basic requirement of a show cause notice as it did not specify the grounds for cancelling the GST registration. The order cancelling the registration was deemed void for being passed without giving the petitioner an opportunity to address the allegations. The court directed the respondent to restore the petitioner's GST registration immediately, highlighting that fresh proceedings could be initiated in compliance with the law.