GST – New Delhi High Court: In the event, the GST portal cannot be adopted to include further explanation of the reasons for which the proposed action is contemplated, Revenue may consider issuing a physical SCN – Instant SCN as does not clearly specify the allegations for cancellation of registration, is liable to set aside – Petition allowed
Order date - 25 January 2023
VDR COLORS AND CHEMICALS PVT. LTD. Vs PRINCIPAL COMMISSIONER, DELHI NORTH ZONE & ANR.
- The Petitioner, VDR Colors And Chemicals Pvt. Ltd., has assailed the SCN on the ground that it does not disclose any reason or ground for proposing cancellation of its registration and therefore none that could be addressed by the petitioner.
- The petitioner has filed the present petition, inter-alia, impugning a Show Cause Notice dated 06.10.2022 (hereafter ‘impugned SCN’) calling upon the petitioner to show cause why its registration under the Goods and Services Tax Act, 2017 not be cancelled.
- Whether the SCN is valid ?
- The divisional bench of the Court observed that the impugned SCN as issued to the petitioner does not have any remarks referring to a letter dated 22.09.2022. It also does not mention the contents of the said letter, which would enable the petitioner to discern the allegations against it.
- In the event, the GST portal cannot be adopted to include further explanation as to the reasons for which the proposed action is contemplated, the concerned authorities may consider issuing a physical show cause notice.
- The show cause notice must clearly state the allegations that the concerned noticee has to meet.
- The petition is allowed.