Cryptic GST cancellation notice without reasons or material fails natural justice and cannot be sustained.

A GST registration cancellation show cause notice must disclose the factual basis, reasons, and supporting material relied upon; a bare and cryptic notice does not give the noticee a real opportunity to answer the allegations and breaches natural justice. Where the notice invoked section 29 of the Gujarat GST Act read with rule 22(1) but omitted particulars of the alleged default and the documents supporting the proposed action, the HC held that fair procedure was not satisfied and the notice was unsustainable. The notice was quashed for breach of natural justice.

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Issues: Whether a show cause notice issued for cancellation of GST registration, which stated only a bare ground and was unsupported by reasons or supporting documents, could be sustained in law.

Analysis: The notice proposed cancellation of registration by invoking the statutory power under section 29 of the Gujarat Goods and Services Tax Act, 2017 read with rule 22(1) of the Gujarat Goods and Services Tax Rules, 2017, but it did not disclose the factual basis for the proposed action or furnish the material relied upon. A person facing such notice must be given a real and effective opportunity to answer the allegations, and a cryptic notice that does not set out the particulars of the alleged default deprives the noticee of a meaningful chance to respond. In proceedings that may lead to cancellation of registration, communication of the reasons and supporting material is part of the requirements of fair procedure and natural justice.

Conclusion: The show cause notice was unsustainable and liable to be quashed for breach of natural justice.

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