Court quashes unlawful GST registration cancellation, orders account unblocked. Vague notice deemed illegal.

The court quashed the show cause notice challenging the cancellation of GST registration and directed the unblocking of the petitioner's GST account. The government's vague notice without specifying the alleged violations rendered the blocking of the account unlawful. The court allowed lawful business operations while enabling the department to pursue dues through legal channels.

---

---

Issues: Challenge to cancellation of GST registration and blocking of GST account without specific reasons.

The petitioner, a proprietor engaged in the purchase and sale of taxable goods, challenged a communication dated 16th December 2020 from the Superintendent of Taxes, seeking reasons why the petitioner's GST registration should not be cancelled. The petitioner also questioned the blocking of their GST registration on the department's portal. The show cause notice issued cited non-compliance with GST Act provisions as the reason for potential cancellation. The petitioner failed to reply within the stipulated time but responded later. Despite this, no order was passed on the show cause notice, and the petitioner's GST account remained blocked. The government argued that the petitioner had outstanding dues. The court found the notice vague and imprecise as it did not specify the exact provisions allegedly violated. Without a formal cancellation order, blocking the GST account was deemed unlawful, hindering the petitioner's business operations. Consequently, the court quashed the show cause notice and directed the unblocking of the petitioner's GST account, allowing for lawful business operations while permitting the department to pursue recovery of dues through legal means. The petition was disposed of, along with any pending applications.

---