GST--Adjudication

Issue a Reasoned Notice and Order--Else Violation of Principle of Natural Justice

CA. Akash Phophalia

With the advent of GST law and the power of officers to cancel GST registrations, it has been seen that cancellation of GST registration has been a regular feature and for such cancellation, a cryptic notice and a cryptic order is generally passed. In fact, such notices and orders are also found in other proceedings under GST. In this article, the learned author wishes to throw light on importance of issue of reasoned notice and passing of reasoned order and implication of cryptic notices and cryptic orders.

1. Principle of natural justice and SCN

The basic purpose of issuance of show cause notice is to give an opportunity to assessee to present its case. If show cause notice is not given then opportunity to assessee would not have possible. Cryptic notice would mean violation of principle of natural justice as the person concerned would have no opportunity to deal with the matter as otherwise required of him. To put it differently, the very purpose of issuance of show cause notice is to grant an opportunity to the parties and if the matter can be addressed at that stage, the very purpose of the notice gets frustrated once there is such cryptic notice which makes hardly any sense.

2. Why reasons