Defective GST show cause notice invalidates cancellation when reply time and hearing date are inconsistent

A show cause notice under GST was held invalid where it required a reply within 30 days but fixed a personal hearing before that period expired. The notice also allowed an ex parte decision only if the taxpayer failed to reply or appear within the stipulated time, making the procedure internally inconsistent and unfair. Because the cancellation of GST registration was founded on that defective notice, the cancellation order could not stand and was quashed. Liberty was reserved to issue a fresh show cause notice in accordance with law.

---

---

Issues: Whether the show cause notice requiring a reply within 30 days but fixing a personal hearing before expiry of that period was legally valid, and whether the consequential order cancelling GST registration could stand.

Analysis: The notice granted 30 days to submit a reply, yet directed appearance before the jurisdictional officer on a date falling within that period. The notice also contemplated ex parte decision only upon failure to reply or appear within the stipulated time. In these circumstances, the notice was held to be bad in law, and the cancellation order, being founded on that defective notice, could not survive.

Conclusion: The show cause notice was quashed, and the cancellation order was also quashed. Liberty was left to the respondent to issue a fresh show cause notice.

---