GST Registration Cancellation Overturned: Vague Show Cause Notice Violates Natural Justice Principles, Petitioner's Rights Restored

HC found GST registration cancellation order invalid due to vague show cause notice lacking specific allegations. The court emphasized principles of natural justice, ruling that respondent failed to provide clear grounds for cancellation. Order was set aside, with directions to restore petitioner's registration and initiate proper legal proceedings.

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Issues involved:
The judgment deals with the cancellation of GST registration based on a show cause notice lacking specific details and the violation of principles of natural justice.

Cancellation of GST registration:
The petitioner challenged the order cancelling their GST registration, which was based on a show cause notice (SCN) alleging registration obtained through fraud, wilful misstatement, or suppression of facts. The petitioner responded by explaining that the registration was obtained by uploading necessary documents, albeit blurred due to size restrictions. The court noted that the impugned SCN lacked specific details and failed to provide clear reasons for the proposed cancellation. It emphasized that a show cause notice should enable the respondent to respond to allegations to make an informed decision.

Violation of principles of natural justice:
The court held that the impugned SCN did not meet the basic requirement of a show cause notice as it did not specify the grounds for cancelling the GST registration. The order cancelling the registration was deemed void for being passed without giving the petitioner an opportunity to address the allegations. The court directed the respondent to restore the petitioner's GST registration immediately, highlighting that fresh proceedings could be initiated in compliance with the law.

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