Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST Registration

The Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.

The bench of Justice Vibhu Bakhru and Justice Tushar Rao Gadela observed that the show cause notice was deficient. It does not sufficiently disclose the reasons why the petitioner’s GST registration was suspended or was proposed to be canceled. It is well settled that a show cause notice must clearly set out the reasons for proposing an adverse action in order for the noticee to respond to the same.

The petitioner has challenged a show cause notice by which the petitioner’s GST registration was suspended, and the petitioner was called upon to show cause why its GST registration should not be cancelled.

The petitioner contended that the only reason stated in the show cause notice for proposing cancellation of the petitioner’s GST registration was "cease to be liable to pay tax".

The petitioner stated that it has been filing its tax returns regularly and also paying the taxes as due. However, the petitioner’s GST registration has been suspended, in terms of the show cause notice, on account of the cryptic reason.

The court set aside the show-cause notice and ordered the GST registration to be restored.

Case Title: Rishiraj Aluminium Private Limited Versus Goods And Service Tax Officer

Citation: 2023 LiveLaw (Del) 517

Date: 17.04.2023

Counsel For Respondent: Anuj Aggarwal, Arshya Singh, Siddhant Dutt

Click Here To Read The Order