GST Registration Cancellation Overturned: Defective Notice Invalidated, Petitioner Granted Fair Hearing and Opportunity to Respond

HC allowed the petition challenging GST registration cancellation, finding the show cause notice defective and lacking proper reasoning. The court directed respondents to issue a fresh notice, giving petitioner opportunity to respond. Registration was reinstated pending further departmental proceedings, emphasizing principles of natural justice in administrative actions.

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Issues Involved:
The issues in this case involve the legality of a show cause notice for the cancellation of GST registration, the subsequent order cancelling the registration, and the appeal process that followed.

Summary:
1. The petitioner filed a petition under Article 226 of the Constitution of India seeking various reliefs, including setting aside the show cause notice (SCN) and order cancelling GST registration, or remanding the matter for fresh adjudication. The petitioner argued that the SCN lacked reasons and the subsequent order cancelling registration was based on incorrect information.

2. The court noted that the SCN did not provide reasons for the cancellation and the subsequent order was passed without proper application of mind. The petitioner's appeal was rejected on the grounds of limitation, but the court found merit in the petitioner's argument based on previous court decisions setting aside similar show cause notices.

3. The court allowed the petition, setting aside the SCN and the order cancelling registration. The respondents were directed to issue a fresh SCN within three weeks, and the petitioner was given two weeks to respond. The court emphasized restoring the registration, subject to any future orders by the department.

4. The court kept all contentions open and disposed of the writ petition without costs, ensuring that the petitioner's GST registration was reinstated pending further proceedings.

5. The judgment highlighted the importance of following due process and providing reasons for administrative actions, emphasizing the principles of natural justice in such matters.

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