GST registration suspension needs reasons; vague show-cause notice was quashed and registration restored.

A GST registration suspension cannot be sustained where the show-cause notice contains no facts, reasons, or supporting material. The Delhi HC noted that the GST framework contemplates suspension only within the prescribed period and requires cancellation proceedings to be completed within the stipulated timeframe. A notice that fails to disclose the material on which the proposed action is based also offends fair procedure. On that basis, the impugned notice was quashed and registration restored forthwith, while the authorities were permitted to issue a fresh notice setting out the relevant facts and reasons and then proceed according to law.

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Issues: Whether a GST registration that had remained suspended for more than two months pursuant to a show-cause notice containing no facts or reasons could be kept suspended, and whether the impugned notice was liable to be quashed with restoration of registration.

Analysis: The notice was admitted to contain no facts, reasons, or supporting material. The relevant GST rules contemplate suspension of registration only within the prescribed period and require cancellation proceedings to be concluded within the stipulated timeframe. A show-cause notice that does not disclose the material particulars on which the proposed action is founded cannot sustain continued suspension of registration. The failure to furnish reasons and supporting material also defeats fair procedure.

Conclusion: The impugned show-cause notice was quashed and the petitioner's GST registration was directed to be restored forthwith. The respondents were, however, permitted to issue a fresh notice containing the relevant facts and reasons and proceed in accordance with law.

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