HC Set Aside One Line Cryptic SCN Issued for Cancellation of GST Registration

Case Details: Rathod Enterprise v. State of Gujarat - [2023] 151 taxmann.com 37 (Gujarat)

Judiciary and Counsel Details

• • N. V. Anjaria & Devan M. Desai, JJ.
  • Maulik Nanavati for the Petitioner.
  • Raj Tanna for the Respondent.

Facts of the Case

In the instant case, a show cause notice (SCN) was issued to assessee proposing cancellation of registration by stating that “in case, registration had been obtained by means of fraud, wilful misstatement or suppression of facts”.

The assessee challenged SCN before the High Court on ground that it was one line cryptic notice and principles of natural justice had not been followed by authority by not giving any opportunity of being heard as it did not contain any reasoning and did not record any details and facts relating to allegations.

High Court Held

The Honorable High Court noted that the department issued one line notice which was cryptic in nature without providing any details or reasons for proposing cancellation of registration. However, the department has now already served another SCN to the assessee and in order to meet ends of justice, the department must give 15 days time to assessee from date of order to submit reply and documents. The Court also directed department to provide personal hearing within 15 days and a reasonable opportunity of being heard to assessee and thereafter, render decision on merits.