Petitioner must get chance to reply to third SCN before GST registration cancellation under natural justice rules

The HC held that the petitioner must be given an opportunity to file a reply to the third SCN before cancellation of GST registration, upholding principles of natural justice. The petitioner was directed to submit a response within two weeks via the GST portal, and the respondent was instructed to decide the SCN promptly to avoid indefinite suspension of the registration. The petition was disposed of accordingly.

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The Delhi High Court, in a petition under Article 226 of the Constitution of India filed by M/s Steelex Enterprises challenging the Show Cause Notice (SCN) dated 3rd September 2024 suspending its GST registration, observed that this was the third such suspension notice issued against the Petitioner. The Court noted that prior suspensions were lifted upon the Petitioner's deposit of tax amounts. Given the recurring nature of the notices and alleged violations, the Court emphasized the Petitioner must be afforded a fair opportunity to file a reply. It ordered that the Petitioner be granted access to the GST portal within two working days and allowed two weeks to file a reply. Subsequently, the Respondent must provide a personal hearing and decide on the impugned SCN by 10th September 2025. The Court held that this procedure is necessary to prevent indefinite suspension of the GST registration. The petition was disposed of accordingly.

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