2023 (8) TMI 393 - DELHI HIGH COURT

Cancellation of registration of petitioner - vague SCN - SCN bereft of particulars - Bald allegations - HELD THAT:- There are merit in the contention that the impugned SCN is bereft of any particulars. The allegations made were bald and not capable of eliciting any meaningful response.

It is settled law that a show cause notice must clearly set out the reasons for proposing the adverse action to enable the noticee to respond to the same. In the present case, impugned SCN does not provide any clue as to why the petitioner’s registration was sought to be cancelled. Apart from making a bald allegation that it had been obtained by means of fraud and wilful misstatement, no particulars are provided. The impugned SCN does not disclose the fraud alleged or the statement alleged to be a misstatement. It provides no clue as to which facts have been allegedly supressed by the petitioner.

The impugned Order-in-Original dated 04.10.2022 also does not set out any detailed reasons for cancellation of the registration - it is conceded that the impugned SCN is inchoate and did not indicate the detailed reasoning for proposing an adverse action. The impugned SCN cannot be sustained.

Petition allowed.