GST cancellation notice must state reasons and particulars before taxpayer can reply and be heard

A cryptic GST registration cancellation notice that omitted basic reasons and particulars was found insufficient for effective rebuttal. The notice only made a general reference to supplies received from a cancelled party, without the details needed to answer the proposed action. The affected taxpayer was entitled to be told the reasons for the proposed cancellation and then given a proper opportunity to file a reply and be heard before any final decision. The respondent was directed to communicate the reasons first and proceed with adjudication only in accordance with law.

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Issues: Whether a cryptic show cause notice proposing cancellation of GST registration, lacking basic reasons and particulars, warranted interference and directions for communication of reasons before further adjudication.

Analysis: The notice was found to be bare and insufficient, as it only referred in general terms to supplies received from a cancelled party and did not furnish the basic details necessary for an effective response. In these circumstances, the petitioner was entitled to be informed of the reasons for proposed cancellation, followed by an opportunity to file a reply and be heard before any final order was passed.

Outcome: The petitioner obtained partial relief. The respondent was directed to communicate the reasons for proposed cancellation, after which the petitioner could file a reply and be heard before a decision in accordance with law.

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