Order Date - 05 October 2023

Parties: Mr. Sanal P Vs Union of India & Anr

Facts -

• The Petitioner, Mr. Sanal P, was issued with a show cause notice proposing to cancel the GST registration. The petitioner had filed an application for revocation of cancellation of his GST registration, however, that application has not been decided as yet. 

Issue -

• Whether the cancellation of GST registration is proper?

Order -

• The Divisional Bench of Hon’ble High Court observed that SCN was incapable of eliciting any meaningful response as it provided no intelligible reasons for proposing cancellation of the petitioner’s GST registration, the petitioner’s response could not be specific either.
• It is apparent from the impugned order that the petitioner’s GST registration was cancelled on account of a letter received from the Anti-Evasion Branch and for the reasons that No Objection Certificate had not been received from the said Branch. There was no such allegation in the SCN to the aforesaid effect.
• Thus The order dated 15.11.2022 is thus void as having been passed in violation of the principles of natural justice. The SCN is also not sustainable for the reason that it fails to meet the necessary standards required of a show-cause notice.
• The proper officer has not passed any order in the petitioner’s Revocation application as yet, although, almost more than ten months have lapsed since the petitioner had responded to the said Show-Cause Notice. The order cancelling the petitioner’s GST registration cannot be sustained. The SCN as well as the order dated 15.11.2022 cancelling the petitioner’s GST registration, are set aside.
• The respondent is directed to restore the petitioner’s GST registration. The writ petition is allowed.