GST – New Delhi High Court: Show cause notice issued without mentioning the reason for GST cancellation of registration is vague and is liable to set aside – Writ petition allowed [Order attached]
Order Date – 31 May 2023
Parties: Panna Impex Vs Commissioner of Central Goods and Service Tax and Ors.
- The Petitioner, Panna Impex, was issued with a show cause notice proposing to cancel the GST registration of the petitioner. It merely mentions the reason as, ‘OTHERS’.
- Pursuant to the show cause notice the registration was cancelled. The petitioner filed an appeal and the same was rejected.
- Whether the cancellation of GST registration is in order?
- The Divisional Bench of Hon’ble High Court observed that the petitioner’s registration was cancelled for the reason that it was found to be non-existent. The petitioner’s appeal against the said order was rejected as being barred by limitation. Although the impugned show cause notice is vague and liable to be set aside; however, the petitioner is now aware of the reason why its registration was cancelled.
- Thus, the impugned order is set aside and the petitioner is granted further opportunity to respond to the impugned show cause notice, treating the ground as stated in the impugned order dated 23.08.2022 as the ground for proposing cancellation of the petitioner’s GST registration.
- The Writ petition is disposed of.