CENTRAL GOODS AND SERVICES TAX ACT, 2017

Section 29

Cancellation of registration - Order passed on the basis of vague and bereft show cause notice - Validity of -

A cancellation order was passed against assessee on the grounds of registration obtained by him by means of fraud, willful misstatement or suppression of facts. Assessee contended that the show cause notice, relying upon which the order was passed was completely vague, due to which he was not able to file any effective reply or even could not know what precise charge was taken against him. Any action based upon such a vague show cause notice could not be sustained because the same would be a product of violation of principles of natural justice. Therefore, the order passed by Revenue was not sustainable and was liable to be set aside. Held: Merely quoting a section and alleging that registration was obtained through fraud, willful misstatement, or suppression of facts in a show cause notice was never enough. The noticee must be given an idea of what the alleged fraud, misstatement, or suppression of facts was. Only then will the noticee be able to understand the allegations raised against it and respond effectively. Therefore, the cancellation order passed by revenue was quashed and set aside.

Relied:Manek Steel LLP v. UOI & Ors. [Writ Petition No. 7126 of 2025, dt. 30-6-2025].

REFERRED :

FAVOUR : In favour of assessee.

A.Y. :

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