Saluja Electronics Vs Commissioner of CGST And Central Excise Delhi East Commissionerate (Delhi High Court)
In Saluja Electronics Vs Commissioner of CGST and Central Excise Delhi East Commissionerate, the Delhi High Court annulled a retrospective GST registration cancellation due to a deficient show cause notice (SCN). The petitioner’s GST registration had been cancelled by an order dated September 2, 2021, on the grounds of alleged submission of fake documents. However, the SCN issued on August 20, 2021, simply listed “Others” as the reason for the proposed cancellation, providing no intelligible basis for the petitioner to respond or defend. The petitioner’s registration was suspended following the SCN, and despite an appeal, the matter remained unresolved.
The court found that the SCN did not meet the required legal standards, as it failed to present any specific allegations or reasons for cancellation. The cancellation order referred to accusations not mentioned in the SCN, such as the use of fake documents. The court concluded that the cancellation was a violation of natural justice principles, as the petitioner was denied a fair opportunity to respond. Consequently, the court set aside both the SCN and the cancellation order, directing the restoration of the petitioner’s GST registration. The ruling clarified that fresh proceedings could be initiated if necessary, but must be conducted in accordance with the law.
