Judicial Relief Granted: GST Registration Cancellation Overturned Due to Procedural Defects in Show Cause Notices

HC allowed the writ petition challenging GST registration cancellation. The court found show cause notices defective due to lack of specific legal provisions and insufficient opportunity to respond. HC set aside the cancellation order, directing the tax authority to issue a fresh notice providing proper grounds and allowing the petitioner adequate time to present their case.

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Issues Involved:
Challenge to cancellation of GST registration based on show cause notices lacking legal provisions and material relied upon.

Analysis:
The Writ Petition was filed under Article 226 of the Constitution of India seeking relief against the cancellation of GST registration. Two show cause notices were issued, one for non-compliance with GST provisions and another for submitting fake Input Tax Credit invoices. The petitioner challenged these notices, arguing that the material relied upon was not provided, violating principles of natural justice. The petitioner's counsel contended that there was no evidence indicating the material relied upon by the authority. On the other hand, the Government Pleader argued that the material supplied was indeed relied upon. The first notice did not specify the violated provisions, and the second notice was not served on the petitioner, depriving them of a chance to respond.

The Court observed that the first notice lacked the provisions of law allegedly violated and the second notice, issued on the same day, contained details without allowing the petitioner to respond. Consequently, the Court held that the order was flawed and remanded the matter to the 3rd respondent. The Writ Petition was allowed, setting aside the challenged order and instructing the 3rd respondent to issue a fresh notice, granting the petitioner sufficient time to respond before passing lawful orders. No costs were awarded, and any pending miscellaneous petitions were closed.

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