Defective GST cancellation notice and improper service led to quashing, with liberty to issue fresh notice under proper procedure.

Delhi HC set aside a defective GST show cause notice and the accompanying Form GST REG 31 because the notice failed to specify the precise allegation of fraud, wilful misstatement, or suppression of facts, omitted the issuing authority's name, designation and signature, and did not annex the referenced documents. The court also held that Form GST REG 31 could not replace a valid notice and that service was contrary to Rule 21A of the CGST Rules, 2017 because it was not uploaded on the common portal or sent by e-mail. Fresh notice was permitted in accordance with law, after a personal hearing.

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Issues: Whether the impugned show cause notice and the accompanying Form GST REG 31 for cancellation and suspension of GST registration were liable to be set aside for want of proper particulars and non-compliance with the prescribed mode of service.

Analysis: The notice was found to be defective because it did not clearly specify the exact ground invoked, namely fraud, wilful misstatement, or suppression of facts. It also did not bear the name, designation, or signatures of the issuing authority, and the supporting documents referred to in the notice were not attached. The Form GST REG 31 relied upon by the respondents was not treated as a substitute for a valid show cause notice. The mode of service was also held to be inconsistent with the prescribed procedure, since the form was not uploaded on the common portal or sent by e-mail as required by Rule 21A of the Central Goods and Services Tax Rules, 2017.

Conclusion: The impugned show cause notice and Form GST REG 31 were set aside, with liberty to issue a fresh notice in accordance with law and after granting an opportunity of personal hearing.

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