HC Ruling: Set Aside Retrospective GST Registration Cancellation Without Specific Fraud Allegations

- Vibhu Bakhru, J., has issued notice in response to a petition challenging an order dated 2-12-2022.

- The respondent's counsel acknowledges the notice.

- The petitioner challenges the respondent's order retrospectively canceling GST registration from 12-12-2019.

- The petitioner initially applied for cancellation from 31-7-2022 due to business discontinuation.

- The officer, in response to the petitioner's application, issued a notice on 3-8-2022, requesting documents.

- On 26-8-2022, the officer rejected the cancellation application, citing the petitioner's failure to provide necessary documents.

- A Show Cause Notice dated 30-8-2022 alleges possible fraud, misstatement, or suppression of facts in obtaining registration.

- The petitioner responds on 7-9-2022, denying the allegations and requesting a hearing postponement.

- The officer, without specifying the allegations, issues the impugned order retrospectively canceling GST registration.

- The order lacks reasoning and states dissatisfaction with the petitioner's response.

- The impugned order violates natural justice as the Show Cause Notice lacks specific details on the alleged fraud or misstatement.

- The petitioner's response was deemed unsatisfactory without clear reasons.

- The impugned order lacks reasoning for cancellation, and neither the Show Cause Notice nor the order explains why the registration was canceled.

- The petitioner had no opportunity to object to retrospective cancellation.

- The High Court sets aside the impugned order and the Show Cause Notice.

- The order clarifies that authorities can initiate fresh proceedings in accordance with the law if there are valid reasons to do so.

- The petition is allowed on the terms mentioned above. Vijay Sales Enterprises Vs. Superintendent Range-25

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