Vague GST cancellation notice and unreasoned order cannot stand; registration must be restored, with fresh notice permitted.

A show cause notice for GST registration cancellation must disclose specific material particulars, and the final cancellation order must record reasons so the affected person can effectively answer the case. Here, the notice only alleged fraud, wilful misstatement or suppression without particulars, and the cancellation order also lacked specific reasons. Because the defect went to the root of the action and denied a fair opportunity of hearing, both the notice and the cancellation order could not be sustained. Registration was to be restored, with liberty to issue a fresh, reasoned notice and proceed in accordance with law after giving a reasonable opportunity to respond.

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Issues: Whether a show cause notice for cancellation of GST registration, which is vague and does not disclose specific reasons, and the consequential cancellation order passed without adequate reasons, can be sustained in law.

Analysis: The notice dated 01.07.2022 merely alleged that registration had been obtained by fraud, wilful misstatement or suppression of facts, without furnishing particulars sufficient to enable an effective reply. The cancellation order dated 15.07.2022 also did not record specific reasons for invoking the cancellation power. In proceedings affecting registration, the notice must disclose material particulars and the final order must be reasoned so that the person concerned gets a fair opportunity to meet the case. Since the impugned notice was cryptic and the consequential order lacked reasons, the defect went to the root of the action.

Conclusion: The show cause notice and the cancellation order could not be sustained and were liable to be quashed. The petitioner was entitled to restoration of registration, with liberty to the authority to issue a fresh notice containing particulars and proceed in accordance with law after giving a reasonable opportunity of hearing.

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