SCN lacking reasons cannot be issued in a mechanical manner without any application of mind

Last updated: 03 March 2023

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court inM/s. Spinns International v. Pr. Commissioner of Goods and Service Tax, [W.P.(C) 1989/2023 dated February 15, 2023] has set aside the Show Cause Notice ("SCN") and the consequential order for cancellation of GST Registration of the assessee, on the grounds that the SCN was bereft of any reasons and was issued in a mechanical manner without any application of mind. Held that, the purpose of a SCN is to enable the noticee to meet the allegations, on the basis of which an adverse action is proposed. Further, the procedure adopted by the Revenue Department is flawed and the order for cancellation of GST Registration of the assessee was passed in violation of principles of natural justice.

Citation :
W.P.(C) 1989/2023 dated February 15, 2023