HC Orders Tax Officer to State Reasons for GST Registration Cancellation

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  • Last Updated on 3 September, 2025

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GST Registration Cancellation Show Cause Notice

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.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied