GST cancellation fails when order relies on a ground not mentioned in the show cause notice.

GST registration cancellation cannot be sustained where the order is founded on a ground not stated in the show cause notice. The notice alleged fraud, wilful misstatement or suppression of facts, but the cancellation order relied on non-furnishing of returns for the prescribed periods. As the assessee was not put to notice of the actual basis for cancellation, the order rested on a ground alien to the notice and was quashed. Registration was restored, with liberty to issue a fresh notice on proper grounds in accordance with law.

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Issues: Whether an order cancelling GST registration can be sustained when the cancellation is founded on a ground different from the one stated in the show cause notice.

Analysis: The cancellation order proceeded on the ground of non-furnishing of returns for the prescribed periods under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017, whereas the show cause notice alleged registration obtained by fraud, wilful misstatement or suppression of facts under Section 29(2)(e) of the same Act. Since the assessee was not put to notice of the actual basis for cancellation, the order was found to rest on a ground alien to the notice.

Conclusion: The cancellation order could not be sustained and was quashed. The registration was restored, with liberty to issue a fresh notice on proper grounds in accordance with law.

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