https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=770722 https://www.taxtmi.com/caselaws?id=770722 Cancellation of petitioner s GST registration - commodities mentioned in the e-way bills did not match with the registrations and that the functioning of the petitioner was in contravention to the GST Act and Rules - cancellation of registration with retrospective effect, without assigning any valid reason or affording a proper reasonable opportunity to respond - violation of principles of natural justice - HELD THAT:- A bare perusal of the show-cause notice, dated 29.03.2025 of the 2nd respondent does not indicate any charge having been framed by the 2nd respondent against the petitioner in the impugned show-cause notice dated 29.03.2025 issued to the petitioner by the 2nd respondent pertaining to the above referred subject issue pertaining to huge e-ways bills having been raised in March, 2025 about 12 cr+ within 15 to 20 days, therefore, this Court agrees with the main submission put-forth by the learned counsel appearing on behalf of the petitioner that the impugned show-cause notice dated 29.03.2025 issued to the petitioner by the 2nd respondent is very vague and hence, petitioner could not submit his explanation to the said show-cause notice issued to the petitioner by the 2nd respondent, dated 29.03.2025. This Court opines that the plea of the learned Special Government Pleader appearing on behalf of the respondents that a supporting document was enclosed along with the show-cause notice, dated 29.03.2025 giving details of the allegations leveled against the petitioner is however disputed by the learned counsel appearing on behalf of the petitioner, placing reliance on the specific averments made at paragraph No.5 of the affidavit filed by the petitioner in support of the present writ petition, contending that no supporting documents were attached to the show-cause notice for cancellation of registration dated 29.03.2025, as contended by the respondents. The Apex Court in Oryx Fisheries Pvt., Ltd., Vs. Union of India Others [ 2010 (10) TMI 660 - SUPREME COURT ], observed that It is true that the show-cause notice cannot be read hyper technically and it is well settled that it is to be read reasonably. But, while reading a show-cause notice the person who is subject to it must get an impression that he will get an effective opportunity to rebut the allegations contained in the show-cause notice and prove his innocence. If on a reasonable reading of a show-cause notice a person of ordinary prudence gets the feeling that his reply to the show-cause notice will be an empty ceremony and he will merely knock his head against the impenetrable wall of prejudged opinion, such a show-cause notice does not commence a fair procedure especially when it is issued in a quasi- judicial proceeding under a statutory regulation which promises to give the person proceeded against a reasonable opportunity of defence. Duly applying the observations of the Apex Court in the judgment and duly examining the contents of the impugned show-cause notice, dated 29.03.2025, it is amply evident and borne on record that admittedly, the impugned show-cause notice, dated 29.03.2025 issued by the 2nd respondent fails the test of fairness and indicates bias. Conclusion - The cancellation order dated 17.04.2025 is passed mechanically, without proper application of mind or on merits, and is consequently set aside. Petition allowed. Case-Laws GST Wed, 07 May 2025 00:00:00 +0530