HC Orders Tax Officer to State Reasons for GST Registration Cancellation

Case Details: Arun Mittal vs. Commissioner Department of Trade and Taxes Govt of NCT Delhi - [2025] 177 taxmann.com 633 (Delhi) 

Judiciary and Counsel Details

• Prathiba M. Singh & Shail Jain, JJ.
• Udit Bakshi, Bhwesh Bhola & Piyush Kumar, Advs for the Petitioner
• Sumit K. Batra, Adv. for the Respondent

Facts of the Case

The petitioner challenged a show cause notice (SCN) issued for cancellation of its GST registration. The SCN merely stated that the registration was liable to be cancelled on account of ‘Supplies Received from Cancel Party’ without disclosing any details or specific grounds. It was contended that the notice was vague, cryptic, and devoid of particulars necessary to enable a proper reply, thereby violating principles of natural justice. The matter was accordingly placed before the High Court in writ proceedings.

High Court Held

The High Court held that the SCN was absolutely cryptic in nature and lacked even basic details which were required to be provided by the tax authorities. It observed that unless reasons and grounds were specifically communicated, the assessee could not be expected to furnish a meaningful reply. The Court accordingly directed the jurisdictional officer to communicate the reasons for the proposed cancellation of registration to the assessee, whereupon the assessee would be entitled to file its reply.