GST: Order to be set aside if assessee was not put to notice about retrospective cancellation of registration
The taxpayer received a Show Cause Notice (SCN) for the cancellation of their GST registration, but the SCN lacked specific reasons for the proposed cancellation, only citing ‘non-compliance’ with the GST Act or Rules.
The SCN instructed the assessee to appear before an authority, but the notice did not provide the name or designation of that authority.
The order to cancel the registration was issued with retrospective effect, without the SCN notifying the assessee about the possibility of retrospective cancellation.
The court held that the cancellation of registration must be based on objective criteria, and since the SCN did not adequately inform the assessee, both the SCN and the order cancelling registration were set aside, and the GST registration was to be restored to its original number.
Delhi HC – Een Een Sales Corporation v. Assistant Commissioner of Central Goods and Service Tax [W.P.(C) NO. 331 OF 2024 & CM APPL. NO. 1505 OF 2024]