SCN & GST Registration cancellation order failed to articulate clear reasons: HC Set aside

Aditi Agencies Through Its Proprietor Mr. Divyanshu Khurana Vs Commissioner of CGST (Delhi High Court)

Introduction: In a recent judgment, the Delhi High Court addressed the validity of a Goods and Services Tax (GST) cancellation order concerning Aditi Agencies. The petitioner contested the order’s legality, citing a lack of clarity and reason in both the Show Cause Notice and the subsequent cancellation order.

Detailed Analysis

1. Issue of Clarity: The court highlighted the ambiguity in the cancellation order, which merely stated “Response not received” without providing substantial reasoning. Additionally, the order contradicted itself by referencing a reply from the petitioner.

2. Violation of Procedure: Both the Show Cause Notice and the cancellation order failed to articulate clear reasons for the cancellation, violating procedural norms. The petitioner, engaged in the wholesale trade of medicines, was not adequately informed about the retrospective cancellation.

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