Show Cause Notice issued for cancellation of GST registration without any proper reasoning is invalid

Last updated: 29 January 2024
Quick Summary
The Delhi High Court has ruled that a show cause notice (SCN) issued for the cancellation of GST registration is invalid if it lacks proper reasoning. In the case of Kundan Impex v. Principal Commissioner of Department of Trade and Taxes, the court found the SCN to be devoid of specific details regarding the alleged fraudulent availment of Input Tax Credit (ITC). Consequently, the court set aside the order of cancellation.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Kundan Impex v. Principal Commissioner of Department of Trade and Taxes [W.P.(C) No. 164 of 2024 dated January 5, 2024] disposed of the writ petition by setting aside the order of cancellation as Show Cause Notice was devoid of any proper reasoning. 

Citation :
W.P.(C) No. 164 of 2024 dated January 5, 2024

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Bimal Jain
Published in GST
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