GST registration suspension quashed while cancellation notice must be decided independently on merits after reply.

A GST show cause notice proposing cancellation of registration was challenged insofar as it also suspended the taxpayer's registration. The Madras HC found the suspension component liable to be interfered with in the circumstances noted, including pending assessment proceedings and the plea of delayed government receipts. The cancellation notice itself was not set aside; it was directed to be adjudicated independently on merits after considering any reply already filed or to be filed within the time granted. The result was that suspension of GST registration was quashed, while cancellation proceedings were left open for fresh consideration.

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Issues: Whether the show cause notice could be quashed to the extent it suspended the petitioner's GST registration, while leaving the cancellation proceedings to be adjudicated on merits.

Analysis: The writ petition challenged a show cause notice proposing cancellation of GST registration, which had also resulted in suspension of registration. The Court noted the pending assessment proceedings and the petitioner's plea that business receipts from the Government had been delayed. In that backdrop, the suspension component of the notice was found liable to be interfered with, while the cancellation notice itself was directed to be decided independently on merits after considering any reply already filed or to be filed within the time granted.

Outcome: The suspension of GST registration was quashed, and the respondent was directed to adjudicate the cancellation notice on merits within the stipulated time.

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