Scrutiny of Procedural Flaws in GST Registration Cancellation: Insights from a High Court Judgment

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....e notice issued to the petitioner, under the Central Goods and Service Tax Act 2017 (CGST Act), proposing the cancellation of their GST registration. The petitioner challenged this notice and the subsequent order canceling their registration, primarily on two grounds: * Lack of Reasoning in Show Cause Notice: The petitioner contended that the show cause notice failed to provide any substantial reason for the proposed action, especially when allegations of fraud and misrepresentation were involved. This, they argued, violated the principles of natural justice as it did not allow them an effective opportunity to respond. * Flawed Order of Cancellation: The order passed by the Superintendent, canceling the registration, was alleged to ....

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....fying an order retrospectively through a reply affidavit was deemed legally untenable. As a result, the court quashed both the show cause notice and the cancellation order, citing these as a nullity in the eyes of the law. However, the court did not preclude the respondents from initiating fresh proceedings, provided they are in strict adherence to legal norms and procedures, including offering a proper hearing to the petitioner. While disposing the case, hon'ble HC issued following directions: (i) The impugned show cause notice dated 27th July 2022 is quashed and set aside. The consequential order dated 11th November 2022 cancelling the petitioner's registration is also quashed and set aside. (ii) The respondents are at liberty t....