![]()
M/s. VK Traders vs. Assistant Commissioner of Central Goods and
Services Tax, Mandoli Division
Case No.: W.P.(C)
9414/2024
Order Date: 16
July 2024
Court: High
Court of Delhi
Case Summary:
The petitioner challenged the cancellation of its GST registration due to an
unclear show cause notice that failed to specify the reasons for the proposed
action.
Case Facts:
·
The petitioner's GST registration was
issued on 01.11.2023.
·
The show cause notice for cancellation,
dated 29.03.2024, mentioned non-compliance with unspecified provisions of the
GST Act.
·
The petitioner responded with necessary
documents and a typographical error requesting revocation of suspension instead
of cancellation.
·
The GST registration was cancelled
retrospectively from 11.11.2023 without specific reasons.
Petitioner's Submissions:
·
Contended that the show cause notice was
vague and lacked specific allegations.
·
Pointed out the lack of reasons in the
cancellation order.
Respondent's Submissions:
·
Did not contest the factual scenario
presented by the petitioner.
Court Findings and
Judgment:
·
The court found the show cause notice
cryptic and not meeting the requisite standards, failing to provide specific
allegations.
·
Recognized that the cancellation order was
unreasoned and violated principles of natural justice.
·
Set aside both the show cause notice and
the cancellation order.
·
Allowed the respondents to issue a fresh
show cause notice in accordance with the law if required.
The petition was allowed,
setting aside the impugned orders and emphasizing the need for clear and
specific allegations in show cause notices to uphold principles of natural
justice.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
Click here
