GST registration cancellation fails where notice omits statutory grounds and order relies on a new, unsupported basis.

Cancellation of GST registration was held unsustainable where the show cause notice alleged only that the principal place of business was not found during a field visit, but did not allege that the taxpayer was not conducting business from the declared premises. The cancellation order relied on a ground not stated in the notice and not traceable to Section 29 of the GST Act, reflecting absence of material and non-application of mind. The cancellation order was quashed, and the appellate order based on it was also quashed as inconsistent with Section 29 and Article 14 of the Constitution of India.

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Issues: Whether cancellation of GST registration could be sustained when the show cause notice did not allege the statutory grounds later relied upon and the cancellation reason was not traceable to Section 29 of the GST Act.

Analysis: The only allegation in the notice was that the principal place of business was not found available during field visit. No specific allegation was made that the petitioner was not conducting business from the declared place of business, nor was there material to support such a conclusion. The cancellation order rested on a ground not reflected in the notice and not covered by the statutory grounds for cancellation, showing absence of material and non-application of mind. The order was therefore inconsistent with the mandate of Section 29 of the GST Act and offended Article 14 of the Constitution of India.

Conclusion: The cancellation order was unsustainable and was quashed, and the appellate order based on it was also quashed.

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