The Delhi High Court in its recent judgement had set aside Order Cancelling Goods and Service Tax (GST) Registration without stating the reason.
M/s Cuthbert Oceans LLP, the petitioner has filed the petition challenging the impugning the show-cause notice calling upon the petitioner to show cause as to why its registration should not be cancelled, as well as the order passed under the impugned show-cause notice. The respondent issued the impugned show-cause notice proposing to cancel the petitioner’s registration.
The impugned show-cause notice did not disclose any other reason or particulars for proposing the adverse action against the petitioner. The petitioner was called upon to furnish a reply to the impugned show-cause within seven days from the date of service of the impugned show-cause notice; it further directed the petitioner to appear before the respondent on 11.05.2023 at 01:00 PM.
The petitioner filed a response to the said show-cause notice albeit belatedly – after the respondent had passed the impugned order cancelling the petitioner’s GST registration.
Merely making the bald statement that the registration was obtained by fraud, willful misstatement or suppression of facts without alluding to any such misstatement or the allegedly suppressed facts, provides no clue to the notice as to the allegation against him.
Mr. Harpreet Singh, counsel appearing for the respondent is also unable to shed any light on the reasons why the petitioner’s registration was cancelled, and that too retrospectively.
A division bench comprising Justice Vibhu Bakhru and Justice Amit Mahajan observed that there was a clear case of violation of the principles of natural justice and set aside the impugned show-cause notice as well as the impugned order.
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