The Delhi High Court in the case Rishiraj Aluminium Private Limited Versus Goods And Service Tax Officer observed and has quashed the show cause notice as it was devoid of reasons and restored the GST registration.
The bench comprising of Justice Vibhu Bakhru and Justice Tushar Rao Gadela observed and stated that the show cause notice was deficient and it does not sufficiently disclose the reasons why the petitioner’s GST registration was suspended or was proposed to be cancelled. Therefore, it being well settled that the show cause notice must clearly set out the reasons for proposing an adverse action in order for the notice to respond to the same.
In the present case, the petitioner has challenged a show cause notice by which the petitioner’s GST registration was suspended, and the petitioner was called upon to show cause why its GST registration should not be cancelled.
Further, it has also been contended by the petitioner that the only reason which is stated in the show cause notice for proposing cancellation of the petitioner’s GST registration was ‘cease to be liable to pay tax’.
Therefore, the petitioner in the plea stated that it has been filing its tax returns regularly and also paying the taxes as due. Thus, the court suspended the petitioner’s GST registration in terms of the show cause notice, on account of the cryptic reason.
Accordingly, the court ordered that the GST registration to be restored and has set aside the show-cause notice.
The counsel, Anuj Aggarwal, Arshya Singh, Siddhant Dutt represented the respondent.