2024 (9) TMI 235

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.... before us is whether the show cause notice for cancellation of registration and action of suspending the registration by order dated 29.02.2024 is justifiable and proper or not. 4. The learned counsel for the petitioner advanced singular point by contending that only so-called 'reason' shown in the impugned show-cause notice dated 29.02.2024 is mere reproduction of language of Section 29(2)(e) of the Central Goods and Service Tax Act, 2017 and does not contain necessary details on the strength of which such a 'conclusion' has been drawn. It is submitted that the notice is so cryptic that no one can file any effective reply. The business of petitioner is abruptly suspended which has a serious impact on his right to livelihood which is guar....

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....ow cause notice, in our considered opinion, should spell out the factual backdrop of breach, on the strength of which the department has rejected and concluded that Section 29 (2) (e) of the Act, can be invoked. If minimum factual backdrop and nature of breach is not mentioned with accuracy and precision, the petitioner was not in a position to file reply. 10. The Apex Court expressed the need of issuance of such notice in Canara Bank vs. Debasis Das [2003] 4 SCC 557, at para No.15, which reads as under: "15. ...Notice is the first limb of this principle. It must be precise and unambiguous. It should apprise the party determinatively of the case he has to meet. Time given for the purpose should be adequate so as to enable him to make ....

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....itiating proceedings against the petitioners therein. 13. Needless to mention that the show cause notice dated 09.11.2023 became the foundation for issuance of orders dated 29.11.2023 and 23.02.2024, since the foundation cannot sustain judicial scrutiny, the entire edifice of orders passed thereupon are liable to be jettisoned". (Emphasis Supplied) 8. Since the show-cause notice and suspension of registration is founded upon a cryptic notice dated 29.02.2024, both are set aside. On regular basis, we are painfully noticing this kind of notices, whereby, without assigning adequate reasons, the business of taxpayer is suddenly suspended. In absence of basic reasons available in the show-cause notice, the party aggrieved by it cannot ev....