GST Registration Cancellation Nullified Due to Vague Show Cause Notice, Petitioner Granted Opportunity to Respond

The HC found the show cause notice for GST registration cancellation vague and procedurally defective. The court set aside the cancellation order and remanded the matter, granting the petitioner a two-week period to respond to allegations of non-existence. A personal hearing was scheduled to allow the petitioner to present their case and enable the officer to make an informed decision.

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Issues involved:
The judgment involves the validity of a show cause notice calling for the cancellation of GST registration, the vagueness of the notice, the cancellation of registration due to non-existence, and the rejection of an appeal on grounds of limitation.

Validity of Show Cause Notice:
The petitioner challenged a show cause notice dated 09.06.2022, which lacked specificity in providing reasons for proposing the cancellation of GST registration, merely citing 'OTHERS'. The court found the notice to be vague and failing to meet the necessary requirements of a valid show cause notice. Consequently, the petitioner's contention was upheld, and it was deemed that the notice and subsequent orders should be set aside.

Cancellation of Registration due to Non-Existence:
The impugned order dated 23.08.2022 revealed that the petitioner's GST registration was canceled on the grounds of being non-existent. Despite the vagueness of the show cause notice, the petitioner became aware of the reason for the cancellation through the subsequent order. The court noted this development but emphasized that the petitioner should have the opportunity to respond to the allegation of non-existence.

Remand and Further Opportunity:
The petitioner's counsel requested a remand of the matter to allow the petitioner to address the allegation of non-existence before the concerned officer. The court agreed with this course of action. Consequently, the impugned order dated 23.08.2022 and the Order-in-Appeal dated 19.04.2023 were set aside. The petitioner was granted a two-week period to respond to the show cause notice, with the ground for cancellation being the non-existence of the petitioner. A personal hearing was scheduled for 20.06.2023 for the concerned officer to consider the petitioner's reply and make an informed decision.

Disposition:
In conclusion, the petition was disposed of with the directions outlined above, providing the petitioner with an opportunity to address the allegation of non-existence and respond to the show cause notice within the specified timeframe.

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