Cancellation of GST Registration without specifying reasons is against principles of natural justice

Last updated: 05 January 2023
Quick Summary
The Gujarat High Court has ruled that cancelling a GST registration without providing specific reasons in the Show Cause Notice (SCN) is a violation of natural justice principles. In the case of Dee Cubes Diamonds Pvt. Ltd., the court found the SCN to be vague and lacking justification for the proposed cancellation. Consequently, the court quashed the cancellation order and directed the authorities to provide a proper hearing and issue a reasoned order.

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in Dee Cubes Diamonds Pvt. Ltd. v. State of Gujarat [R/Special Civil Application No. 22875 of 2022 dated December 16, 2022] has held that the Show Cause Notice ("SCN" that does not contain reason to justify the cancellation of registration therefore, is violative of principles of natural justice and needs to be quashed. 

Citation :
R/Special Civil Application No. 22875 of 2022 dated December 16, 2022

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Bimal Jain
Published in GST
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