Mere non-reply to SCN cannot be ground for cancellation of GST Registration

Last updated: 11 February 2023

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Quick Summary

The Allahabad High Court has ruled that a business's GST registration cannot be cancelled solely because they failed to reply to a Show Cause Notice (SCN). The court emphasised that tax authorities must still consider the case's facts to justify cancellation. In this instance, the court set aside the cancellation order and directed the assessee to provide a reply within three weeks, allowing the authorities to reconsider the matter.

Court :
Allahabad High Court

Brief :
The Hon'ble Allahabad High Court in Acambis Helpline Management (P.) Ltd. v. Union of India [Writ Tax No. 185 of 2022 dated December 15, 2022] has set aside the order cancelling the Goods and Services Tax ("GST") Registration of the assessee, passed on the ground that the assessee had failed to reply to the Show Cause Notice ("SCN"). Held that, even if the assessee has failed to furnish a reply to a SCN, it is necessary for the Revenue Department to consider the facts of the case and accordingly conclude that the facts necessitated cancellation of the GST Registration. Directed the assessee to submit a reply to the SCN within 3 weeks. Further, directed the Revenue Department to decide the matter afresh in accordance with the law.

Citation :
Writ Tax No. 185 of 2022 dated December 15, 2022

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