Order Date – 25 January 2023

Parties: Surender Kumar Jain Vs Principal Commissioner, Delhi North Zone & ANR

Facts – 

• The Petitioner, Surender Kumar Jain, was issued with a show cause notice dated 06.10.2022 to show cause why its registration under the CGST Act not be cancelled. The petitioner had responded to the SCN by a letter dated 18.10.2022, inter-alia, stating that the notice was issued without providing proper information. 

Issue – 

• Whether the Show cause notice issued without proper information is valid?

Order -

• The divisional bench of Hon’ble High Court held that if the concerned authorities find that they are unable to communicate the allegations in respect of which the response is elicited by way of a show cause notice, by selecting the options as available on the electronic system; 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. This being the essence of a show cause notice, any notice that does not qualify this criterion, cannot be considered as a show cause notice.
• Hence the impugned SCN set aside.