Pragya Publicity Center Vs State of U.P. And 3 Others (Allahabad High Court)
Allahabad High Court has quashed the cancellation of a Goods and Services Tax (GST) registration for Pragya Publicity Center, a proprietorship firm, citing a violation of natural justice and procedural irregularities. The court’s decision, delivered in the case of Pragya Publicity Center Vs. State of U.P. And 3 Others, underscores the necessity for tax authorities to adhere strictly to the grounds stated in a show cause notice (SCN) when revoking GST registration.
Pragya Publicity Center, engaged in the advertising business, had its GST registration (No. 09BENPK7357G1ZZ) cancelled on October 23, 2023, by the Assistant Commissioner, Sector-17, Varanasi. The firm’s troubles began with a show cause notice issued on March 2, 2023, proposing cancellation of registration on the sole ground of “failure to furnish the returns for continuous period of six months.”
However, the subsequent cancellation order diverged significantly from this initial premise. The Assistant Commissioner’s order stated that the registration was cancelled under Rule 21(a) of the CGST/SGST Rules, on the ground that the “person does not conduct any business from the declared place of business.” This new ground was never communicated to the petitioner in the show cause notice, nor was an opportunity provided to address this specific allegation.
