Home GST GST Cancellation Notice must clearly set out fraudulent allegations [Read Order]

GST Cancellation Notice must clearly set out fraudulent allegations [Read Order]

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GST Cancellation Notice must clearly set out fraudulent allegations [Read Order]

GST Cancellation Discover should clearly set out fraudulent allegations [Read Order]

The Delhi Excessive Court docket within the matter of M/S SK ENTERPRISES Vs. PRINCIPAL COMMISSIONER OF GOODS AND SERVICES TAX has dominated out that GST Cancellation Discover should clearly set out fraudulent allegations.

The petitioner has filed the current petition impugning the order dated 19.07.2023 (hereafter ‘the impugned order’) cancelling the petitioner’s GST registration with impact from 23.05.2022. The impugned order was handed pursuant to the present trigger discover dated 05.07.2023 (hereafter ‘the SCN’).

A plain studying of the SCN signifies that the petitioner’s GST registration was proposed to be cancelled for the next causes:

“1. Part 29(2)(e)-registration obtained by way of fraud, wilful misstatement or suppression of information.”

The petitioner was referred to as upon to furnish a reply to the SCN inside a interval of seven working days from the date of service of the SCN. The petitioner was additionally directed to seem earlier than the involved Officer on 06.07.2023. Moreover, the petitioner’s GST registration was suspended with impact from the date of the SCN, that’s, with impact from 05.07.2023.

A plain studying of the SCN signifies that it doesn’t set out any particular purpose for proposing to cancel the petitioner’s GST registration. Though it’s alleged that the petitioner has obtained registration by way of fraud, wilful misstatement or suppression of information. It neither specifies the alleged fraud nor the misstatement alleged to have been made by the petitioner. It additionally gives no clue as to the information allegedly suppressed by the petitioner.

It’s trite {that a} present trigger discover should clearly set out the allegations on the idea of which an hostile motion is proposed, to allow the noticee to meaningfully reply to the identical. Clearly, the SCN within the current case fails to fulfill the mentioned commonplace.

The impugned order can also be not knowledgeable any purpose and it merely mentions that the identical has been issued in reference to the SCN.

It’s observed that the petitioner’s registration has been cancelled with retrospective impact from 23.05.2023. Neither the SCN nor the impugned order gives any causes for doing so.

In view of the above, the petition is allowed. The SCN in addition to the impugned order are put aside.

The respondent is directed to forthwith restore the petitioner’s GST registration.

It’s clarified that this order wouldn’t preclude the respondent from initiating or pursuing any proceedings whether it is discovered that the petitioner has been non-compliant, or is violating, any provisions of regulation. The petition is disposed of.

For Official Judgment Obtain PDF Given Beneath:

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