Cancellation of registration without providing opportunity of hearing is cryptic in nature

Last updated: 04 January 2023

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Quick Summary

The Gujarat High Court has ruled that cancelling a GST registration without providing an opportunity for a personal hearing is invalid and a violation of natural justice principles. The court found the show cause notice and cancellation order to be 'cryptic' and ordered the tax authorities to restore the petitioner's GST registration. The court also awarded costs to the petitioner and allowed the authorities to issue a fresh notice with proper reasons and a hearing opportunity.

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in MahendraJunabhaiZala v. Office of Deputy Commissioner, State Tax [R/Special Civil Application No. 13597 of 2022, dated November 25, 2022]has held that Show Cause Notice ("SCN") and order for cancellation of Goods and Service Tax ("GST") Registration is not sustainable on the grounds that the order was passed without any personal hearing and thus, cryptic in nature. Further directed the Revenue Department to restore the GST registration of the assessee.

Citation :
R/Special Civil Application No. 13597 of 2022, dated November 25, 2022

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