Cancellation of GST Registration based on vague SCN and non-speaking order to be quashed: HC

Case Details: Vinayak Metal v.State of Gujarat - [2022] 141 taxmann.com 348 (Gujarat)

Judiciary and Counsel Details

• • J.B. Pardiwala & Ms Nisha M. Thakore, JJ.
  • Ms. Manvi Demle for the Petitioner.
  • Utkarsh Sharma, AGP for the Respondent.

Facts of the Case

The department issued show-cause notice (SCN) to petitioner for cancellation of registration in which it was stated that:

“Issues any invoice or bills without supply of goods and/or services in violation of the provisions of this Act, or the rules thereunder leading to wrongful availment of input tax credit or refund of tax.”

The petitioner appeared before the authority and submitted his objections but without considering his objections, the registration was cancelled. It filed writ petition against the same.

High Court Held

The Honorable High Court noted that SCN issued to petitioner was absolutely vague and bereft of any material particulars. Moreover, the impugned order was also vague, non-speaking order, cryptic in nature and reason of cancellation were not decipherable therefrom and the principles of natural justice were violated. This, it was held that SCN and impugned order were liable to be quashed and the matter was remitted to concerned authority for denovo proceedings in accordance with law.