Fayiz Nangaparambil Vs Union of India & Anr. (Delhi High Court)
SCN lacking specific reasons is liable to be set aside
The Hon’ble Delhi High Court in Fayiz Nangaparambil v. Union of India & Anr. [W.P.(C) 7477/2023 dated May 26, 2023] set aside the Show Cause Notice (“SCN”) proposing to cancel the GST Registration of the assessee, on the grounds that SCN is bereft of any specific reasons that could be addressed by the assessee. Held that, the SCN was short of the necessary requirements as it did not contain any specific allegation.
Facts:
This Petition has been filed against a SCN, dated May 20, 2023 (“the Impugned SCN”) issued to Fayiz Nangaparambil (“the Petitioner”) by the Revenue Department (“the Respondent”) wherein the Petitioner was called upon to show cause as to why it’s GST registration should not be cancelled and also records that the Petitioner’s GST registration is suspended with effect from May 20, 2023.
The Petitioner contended that the only reason stated in the Impugned SCN for proposing cancellation of the Petitioner’s GST registration was “cease to be liable to pay tax” and mentioned that he has been filing its tax returns regularly and also paying the taxes as due. However, the Petitioner’s GST registration has been suspended, in terms
of the Impugned SCN on account of the cryptic reason.
Issue:
Whether GST registration of the Petitioner is liable to be cancelled solely on the basis of the Impugned SCN which does not have any specific reason?
Held:
The Hon’ble Delhi High Court in W.P.(C) 7477/2023 held as under:
