Lack of reply to SCN is not a valid reason for cancellation of registration: HC

Case Details: Acambis Helpline Mamagement (P.) Ltd. v. Union of India - [2023] 147 taxmann.com 100 (Allahabad)

Judiciary and Counsel Details

• • Alok Mathur, J.
  • Raghvendra P. Singh & Satyendra Prakash Singh for the Petitioner.
  • Dipak Seth for the Respondent.

Facts of the Case

The petitioner filed writ petition to challenge the order whereby registration of the petitioner had been cancelled in exercise of the power under Section 29 of CGST Act and appeal preferred by the petitioner had also been dismissed. It contended that the order cancelling registration was illegal as it was non-speaking. The department submitted that the order cancelling registration was passed for non-filing of return for six months and non-filing of reply to show cause notice.

High Court Held

The Honorable High Court noted that the reason for cancelling registration of petitioner was not specified in order and absence of reply was only reason mentioned in order. The Court further noted that even if the petitioner did not give response to the show cause notice, it was incumbent to the competent authority to consider the fact of case and come to the conclusion that the facts necessitate cancelling of the registration of the petitioner. Therefore, the impugned order was illegal and set aside. The Court also directed the petitioner to file reply and Adjudicating Authority was directed to decide matter afresh.