GST registration cancellation fails when the order relies on grounds not stated in the show-cause notice.

GST registration cancellation could not be sustained where the cancellation order was based on a ground not stated in the show-cause notice. The notice alleged fraud, wilful misstatement or suppression of facts, but the order rested on a different allegation that business was not being conducted from the declared place of business. Because the petitioner was not given notice of the real basis for action, it lacked a meaningful opportunity to respond, and the defect went to the fairness of the cancellation process. The cancellation order was therefore set aside.

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Issues: Whether the cancellation of GST registration could be sustained when the cancellation order was passed on a ground different from the ground stated in the show-cause notice.

Analysis: The show-cause notice proposed cancellation on the basis of fraud, wilful misstatement or suppression of facts, while the cancellation order rested on the allegation that business was not being conducted from the declared place of business. Since the order proceeded on a ground not put to the petitioner in the notice, the petitioner was denied a meaningful opportunity to respond to the real basis of action. The defect was procedural and went to the fairness of the cancellation process.

Conclusion: The cancellation order could not be sustained and was set aside.

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