The Delhi High Court set aside the order cancelling Goods and Service Tax (GST)Registration without stating the reason.
The petitioner, Singla Exports has filed the petition challenging the impugned order whereby the petitioner’s GST Registration was cancelled with retrospective effect from 02.07.2017.
It was contended on behalf of the petitioner that the impugned order was passed under a Show Cause Notice that did not disclose the specific reasons for proposing the cancellation of the petitioner’s GST Registration. The petitioner had also applied for cancellation of its GST Registration with effect from 30.04.2022 on the ground that it had discontinued its business operations. However, the said application was not processed on the ground that the petitioner had failed to respond to the said impugned Show Cause Notice seeking further documents and details.
It is settled law that a Show Cause Notice must specify the reasons for the proposed action to enable the noticee to respond to the same. It was evident that the impugned Show Cause Notice did not provide any clue as to which provisions of the GST Act or the GST Rules were allegedly violated by the petitioner.
The petitioner neither responded to the impugned Show Cause Notice nor appeared before the concerned Officer on 17.06.2022 for a personal hearing. Notwithstanding the same, for the reasons aforesaid, neither the impugned Show Cause Notice nor the impugned order can be sustained.
While rejecting the petitioner’s application on the ground that no reply had been received, also stated that the petitioner’s reply was examined. It appears that the order is auto-generated. It is also noticed that the order rejecting the petitioner’s application is not signed by the concerned person.
The division bench comprising Justice Vibhu Bakhru and Justice Amit Mahajan set aside the order dated 10.06.2022 rejecting the petitioner’s application and remanded the matter to the concerned officer to consider afresh.
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