Order for Cancellation of Registration Based on SCN Which Didn’t Provide Any Reason to be Set Aside | HC

Case Details: Singla Exports v. Central Board of Indirect Taxes and Customs - [2023] 154 taxmann.com 73 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Puneet Agrawal, Kashish Gupta, Ms Mansi Khanna & Chetan Kumar Shukla, Advs. for the Petitioner.
  • Ms Anushree Narain for the Respondent.

Facts of the Case

In the present case, the GST Registration of petitioner was cancelled with retrospective effect from 02.07.2017 on ground that it had not responded to the show cause notice (SCN). The petitioner filed application for cancellation of GST registration but it was also rejected on same ground. It filed writ petition and contended that the SCN did not disclose the specific reasons for proposing the cancellation of the petitioner’s GST registration.

High Court Held

The Honorable High Court noted that the SCN issued for cancellation of registration did not provide any clue as to which provisions of GST Act or GST Rules were allegedly violated by the petitioner. The impugned SCN was incapable of eliciting any meaningful response and order passed pursuant to impugned SCN could not be sustained.

Moreover, the order rejecting petitioner’s application of revocation was auto-generated and the said order was not signed by concerned person. Therefore, the Court held that the both orders and SCN were liable to be set aside and matter was to be re-adjudicated.