Order Date – 16 August 2023

Parties: Ottimo Visuals Vs Commissioner of GST, Delhi West and Ors.

Facts – 

• The Petitioner, Ottimo Visuals, was issued with a show cause notice dated 07.07.2022 proposing to cancel to the petitioner’s GST registration for non compliance of any specified provisions in the GST Act or the Rules made thereunder. 
• The petitioner was directed to appear before the proper officer on 25.07.2022. The petitioner neither filed a reply nor appeared before the proper officer. On 18.08.2022, the proper officer passed an order cancelling the petitioner’s GST registration with retrospective effect from 02.07.2017.
• The petitioner filed an application seeking revocation of the order dated 18.08.2022 cancelling its GST registration. And the same was also rejected by an order dated 13.10.2022.

Issue – 

• Whether the cancellation of GST registration is in order?

Order – 

• The Hon’ble High Court observed that a show cause notice must clearly indicate the reasons for proposing the adverse action in order to enable the noticee to respond to the same. Clearly, the impugned show cause notice does not meet this standard. As it is apparent that no meaningful response could be elicited from the respondents on the basis of the cryptic reasons as set out in the show cause notice.
• The impugned order dated 13.10.2022 neither refers to the reply filed by the petitioner nor considers the explanation provided by the petitioner. There is no dispute that the premises where the petitioner claims to have been carrying on his business prior to shifting to new address in July, 2021, was demolished by the Northern Railway Authorities. Although, it is alleged in the counter affidavit that it was demolished many years ago, there is no material on record to establish the same.
• Hence it was held that neither the impugned show cause notice nor the show-cause notice dated 23.09.2022 can be sustained. The appeal is allowed.