GST Registration Can’t be Cancelled by Merely Mentioning that Registration was Obtained by Means of Fraud etc. | HC

Case Details: Cuthbert Oceans LLP v. Superintendent of CGST - [2023] 153 taxmann.com 410 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Tarun Gulati, Sr. Adv. & Tarun Chawla, Adv. for the Petitioner.
  • Harpreet Singh, SSC Ms Suhani Mathur & Jatin Kumar Gaur, Advs. for the Respondent.

Facts of the Case

The Superintendent of CGST issued a show-cause notice to the petitioner proposing to cancel petitioner’s registration on ground that registration was obtained by means of fraud, wilful misstatement or suppression of facts. It filed writ petition and contended that show-cause notice did not disclose any other reason or particulars for proposing the adverse action against the petitioner and the order cancelling registration was passed.

High Court Held

The Honorable High Court noted that the impugned show-cause notice was bereft of any particulars and it would be difficult to accept that the said show-cause notice could elicit any meaningful response. It is trite law that a show-cause notice must set out the allegation in order to enable the noticee to respond to the same and 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, would provide no clue to the notice.

The Court also noted that although the impugned order of cancellation of registration was an appealable order, but this was a clear case of violation of the principles of natural justice. Thus, it was held that the impugned show-cause notice as well as the impugned order were liable to be set aside.