Order Date – 12 July 2023

Parties: 

Facts – 

• The Petitioner was issued with a show cause notice proposing to cancel the GST registration of the petitioner which doesn't provide any reason and it doesn't mention any details of issuing authority.
• Though the show cause notice was non-speaking, the petitioner filed a reply to it. Subsequently the registration was cancelled by the respondent authority.

Issue – 

• Whether the cancelation of GST registration is in order?

Order –

• The Divisional Bench of Hon’ble High Court observed that the reason shown in show cause notice requires no further emphasis as it is vague and delphic and therefore, show-cause notice gives no scope for the petitioner to give an affective reply. Still, the petitioner submitted his explanation/ objections on 20.06.2023 giving certain details therein, which is no need to be discussed at length as the show-cause notice itself suffers the vice of obscurity.
• That apart, the particulars such as designation and office of the issuing authority are also not mentioned in the show-cause notice. These defects themselves are sufficient to strike down the notice at the threshold.
• Hence it was set aside the impugned show cause notice and directed the respondent to restore the registration with immediate effect. However, this order will not preclude the concerned authority to issue a fresh show-cause notice embedding all necessary and relevant particulars therein so as to enable the petitioner to submit his explanation.

#Need for GST in India