Relief to Petitioner in case where Show Cause Notice does not clearly indicate reasons for which registration is cancelled

Last updated: 23 September 2023

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Quick Summary

The Delhi High Court has ruled that the Revenue Department cannot cancel a business's GST registration if the show cause notice does not clearly state the specific reasons for the proposed cancellation. In this case, the petitioner requested clarification on the allegations of fraud or misrepresentation, but the department proceeded with cancellation without providing any details. The court found this to be a violation of natural justice and set aside the cancellation order, emphasising the need for transparency and clear reasoning in tax proceedings.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of M/s. Rahul Kumar Jain and Co. v. Union Of India &Anr. [W.P. No. 11963 of 2023 dated September 12, 2023] observed that the Revenue Department cannot cancel the GST Registration of an assessee where specific reasons are not provided. The Court held that show cause notices and orders lacking reasons cannot be upheld.

Citation :
W.P. No. 11963 of 2023 dated September 12, 2023

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