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2023 (11) TMI 550 - DELHI HIGH COURTCancellation of petitioner’s GST registration - SCN did not specifically stated the reason for cancellation - Suppression of facts - HELD THAT:- Concededly, the SCN did not specifically stated the reason for proposing to cancel the petitioner’s GST registration. Although it was alleged that the GST registration was obtained by means of fraud, wilful misstatement, or suppression of facts, but the SCN did not provide any clue as to the alleged fraud committed by the petitioner or the wilful misstatement made by it. There is no indication as to the facts which are alleged to have been suppressed by the petitioner. It is trite law that a show cause notice is to respond to the allegation which form the basis of proposing an adverse action. In the present case, the SCN was incapable of eliciting any meaningful response. The impugned order is also bereft of any reason. It merely states that it is in reference to the SCN. In view of the above, the impugned order is liable to be set aside as it is void and not informed by reason. There are merit in the petitioner’s contention that once the petitioner’s GST registration was restored – which was cancelled on an allegation that it was obtained by fraud, misstatement or suppression of facts – it is not open for the respondent to again cancel the petitioner’s GST registration for the same reason unless it is premised on the ground that had occurred after the petitioner’s GST registration has been cancelled on 30.09.2021. The present petition is allowed and the impugned order is set aside and the petitioner’s GST registration is directed to be restored forthwith.
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