Prince Garg Vs Avato Ward 63 State Goods And Service Tax & Anr. (Delhi High Court)
The Delhi High Court quashed a show cause notice (SCN) issued to Prince Garg by the State Goods and Service Tax authorities for cancelling his GST registration, citing a lack of specific allegations. The SCN, issued on July 2, 2024, merely cited Rule 21(b) of the CGST Rules, 2017, without specifying which invoices or bills were allegedly issued without supplying goods or services. The petitioner argued that the SCN was vague and did not provide sufficient details to form a proper defense. The court noted that the SCN failed to meet the necessary standards as it lacked specific reasons or supporting documents, making it difficult for the petitioner to respond effectively. Consequently, the court set aside the SCN and ordered the immediate restoration of the petitioner’s GST registration. However, the court also clarified that this decision would not prevent the authorities from initiating fresh proceedings if deemed necessary under the law.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
2. The learned counsel for the respondents accept notice.
3. The petitioner has filed the present petition impugning the show cause notice dated 02.07.2024 (hereafter the impugned SCN) issued by the proper officer calling upon the petitioner to show cause as to why his Goods and Service Tax (GST) registration not be cancelled.
