Show-cause notice cancelling GST registration quashed for being cryptic; authority must give specific reasons and hearing before cancellation

HC held the show-cause notice cancelling the petitioner's GST registration was cryptic and lacked reasons or grounds, breaching principles of natural justice. The notice merely cited "Supplies Received From Cancel Party" without particulars or supporting details. The court directed the tax authority to communicate specific reasons to the petitioner and afford opportunity to be heard before proceeding with cancellation, and disposed of the petition accordingly.

---

---

Petitioner filed a writ under Article 226 challenging the Show Cause Notice for Cancellation of GST Registration dated 21/08/2024 (ref. ZA070824090013O). The SCN states, inter alia, "Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled" and records the sole reason as "Supplies Received From Cancel Party"; it also advised that the case may be decided "ex parte" and that "your registration stands suspended with effect from 21/08/2024." The court found the SCN "absolutely cryptic" and lacking basic details necessary for meaningful response. Noting that the petitioner could have sought reasons earlier, the court nonetheless directed the authority to communicate specific reasons to the petitioner by 10/09/2025. Petitioner to file a reply by 15/10/2025; thereafter the petitioner will be heard and the matter decided in accordance with law. Petition disposed of on these terms; pending applications disposed.

---