SCN and Order for Cancellation of GST Registration Lacked Clarity on the Nature of Non-compliance, HC Quashed Cancellation Order

Case Details: PAV Warehouse v. Assistant Commissioner (ST), Poonamallee - [2024] 160 taxmann.com 491 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• P. Prince Premkumar for the Petitioner. 
• Mrs K. Vasantha Mala, Govt. Adv. (Taxes) for the Respondent.

Facts of the Case

The petitioner, registered under the GST law, received a show cause notice alleging non-compliance of the GST law without specifying the relevant provisions. Despite the petitioner’s response highlighting the vagueness of the notice and their inability to understand the nature of non-compliance, the cancellation order was issued against them. Challenging this cancellation, the petitioner approached the High Court, arguing that both the show cause notice and the subsequent cancellation order lacked clarity and failed to demonstrate proper application of mind.

High Court Held

During the court proceedings, it was confirmed that no documents were enclosed with the show cause notice. Further, both the show cause notice and the cancellation order failed to specify which provisions of the GST statutes were purportedly violated by the petitioner.

As a result, the High Court quashed the cancellation order and directed the restoration of the petitioner’s GST registration.