SCN without details or particular on Demand of GST is Invalid: Delhi HC quashes Order [Read Order]

The Delhi High Court held that the Show Cause Notice ( SCN ) without details or particular on demand of Goods and Service Tax ( GST ) is Invalid. The court found that the subject Show Cause Notice itself is defective and does not give any details or particulars.

The petitioner was represented by Dayaar Singla. The respondent was represented by Mr. Rajeev Aggarwal with Ms Shaguftha Hameed & Ms. Samridhi Vats.

Rajesh Kumar Singhal, the petitioner was not clear as to which authority has issued the notice as the notice does not give the name or designation of the issuing authority and as such by way of abundant caution, he impleaded both the State as well as the Central GST authority as parties to the petition. 

The Petitioner challenged the Show Cause Notice whereby the GST registration of the petitioner is proposed to be cancelled. It was submitted that registration of the petitioner has been suspended and the petitioner is unable to do any business. 

 The show cause notice proposed to cancel registration stating the following reason “Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax.”

The Show Cause Notice also requires the petitioner to appear before the signatory of the Show Cause Notice. However, neither the name nor designation of any officer is mentioned as to where the petitioner has to appear.

A division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja found that the subject Show Cause Notice itself is defective and does not give any details or particulars. The Show Cause Notice in the reasons column has merely extracted the provisions of law. It stated that the petitioner has issued invoices or bills without supply of goods or services, however, no details of invoices, bills or non-supply of goods or services has been mentioned in the Show Cause Notice.  

The court quashed the order and set aside the impugned Show Cause Notice. Further held that “it would be however open to the respondent authority to issue a proper Show Cause Notice giving full particulars of the infractions, if any, committed by the petitioner as also an opportunity of personal hearing to the Show Cause Notice“.

To Read the full text of the Order CLICK HERE

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