Order Date – 15 July 2022
 

Facts – 

• The Petitioner, M/s Ram Krishna Garg, has received a Show Cause Notice on 09.07.2021 with reference to Section 29(2)(a) of the Act alleging specific non-compliance of specified GST law.
• Pursuant to the reply furnished by the petitioner apart, the authorities proceeded to pass the impugned order dated 20.07.2021 cancelling the GST registration of the petitioner.
• Aggrieved the petitioner filed a writ petition.

Issue – 

• Whether as harsh punishment as cancellation of registration is sustainable when not even mentioned in SCN?

Order – 

• In the present matter, the court observed that the notice dated 9.7.2021 alleged non-compliance of specified provisions of GST Act or the Rules. However, that notice did not disclose the exact violation of the Act or the Rules, alleged. Unless that allegation was specified in detail and unless material considered adverse to the petitioner had been confronted to it for the purposes of eliciting its reply thereto, the notice would remain completely vague and mute.
• The cancellation of the registration has the consequence of bringing the business of an assessee to a complete stand still. It has adverse impact on his fundamental right to do business. 
• Also, it is not shown that alleged violations were such, as may have warranted cancellation of the petitioner’s registration under Section 29(2)(a) of the Act.
• Therefore, the order is liable to be set aside, the registration of the petitioner was restored.