The Delhi High Court in a recent judgment quashed a Show-Cause Notice and Order signaling the cancellation of Petitioner’s Goods and Services Tax ( GST ) registration citing the inadequacy of the Show-Cause Notice and Order in rightly referencing the specific violations under the GST Act, 2017 that have been purported against the Petitioner. The judgment was passed on a Writ Petition filed by Amir Malik, being aggrieved by the cancellation of their GST registration by means of the impugned order dated 04.07.2023, preceded by Show-Cause Notice dated 16.06.2023. Complete Draft Replies of GST ITC Related Notices, Click Here An excerpt from the impugned Show-Cause Notice reads the cancellation of the Petitioner’s GST registration on the “Non compliance of any specified provisions in the GST Act or the Rules made thereunder as may be prescribed”, followed up by the impugned Order affirming the cancellation of GST registration, while advising the Petitioner to furnish their Final Return under Form GSTR-10. The Division Bench of the Delhi High Court composed by Justice Yashwant Varma and Justice Ravinder Dudeja observed that neither the Show-Cause Notice or the GST cancellation Order therein clearly assigned or recorded any substantive reasoning warranting the cancellation of the Petitioner’s GST registration.

The Bench observed that the Show-Cause Notice has been ‘gloriously silent’ with respect to the provisions of the GST Act which have been alleged by the Department to have been violated or infringed upon. Complete Draft Replies of GST ITC Related Notices, Click Here Highlighting the stagnant nature of the contentions raised by the Department from the Show-Cause Notice to the Final Order, the Delhi High Court discerned that the Department failed to provide any clue with respect to the provisions of the GST statutes which have been alleged to be violated or infringed. In light of the findings made, the Delhi High Court proceeded to allow the writ petition and quashed both, the impugned Show-Cause Notice and subsequent Order of GST Registration Cancellation therein. However, the Delhi High Court reaffirmed that the instant Order has been passed by the High Court without laying prejudice to the right of the respondents to contest the instant matter in accordance with the limits permissible by the law. Complete Draft Replies of GST ITC Related Notices, Click Here The present case is an example of how the Judicial bodies are burdened due to sheer incompetence displayed by an authoritative department in rightly initiating process without reference to precise provisions of the statutory law.