Natural justice in GST cancellation: notice with inadequate time and order beyond the show cause scope were set aside.

GST registration cancellation was challenged on the ground that the show cause notice was uploaded with an unusually short returnable time, depriving the taxpayer of a fair opportunity to respond. The cancellation order also went beyond the scope of the notice. On these facts, the Bombay High Court treated the action as arbitrary and contrary to natural justice, and set aside both the notice and the cancellation order while permitting a fresh notice in accordance with law.

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Issues: Whether the cancellation of GST registration and the show cause notice were liable to be set aside for breach of natural justice and arbitrariness.

Analysis: The notice was uploaded on the web portal with an unusually short returnable time and the subsequent cancellation order was passed without fair opportunity. The order also travelled beyond the scope of the show cause notice. In these circumstances, the action was held to be arbitrary and contrary to the principles of natural justice.

Conclusion: The show cause notice and the cancellation order were set aside, with liberty to issue a fresh notice in accordance with law.

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