A GST registration cancellation order is legally unsustainable if it relies on facts not disclosed in the preceding show cause notice, as this violates the principles of natural justice and the right to a fair hearing.

DEEPAK SIBAL, J . (Oral)

1. A show cause notice dated 25.10.2024 was served upon the petitioner as to why his GST registration be not cancelled. Such show cause notice reads as under: -

“Reference No. : ZA061024069086P Dated: 25/10/2024

To

Registration Number (GSTIN/UIN): 06IZDPM1347G1ZD

Manjeet

Bhatnagar Colony, 1, Gali No. 7, Rohtak Road, Jind, Jind, Haryana 126102

Show Cause Notice for Cancellation of Registration

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

1. Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts

2. Rule 21(a)-person does not conduct any business from declared place of business

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

You are hereby directed to appear before the undersigned authority on 05/11/2024 at 13:00.

SHAMSHER SINGH

2. A perusal of the afore quoted show cause notice reveals that it does not contain any facts on which it was based and therefore does not serve the purpose for which it was issued.

3. Nonetheless what followed was an order dated 18.11.2024 cancelling the petitioner’s GST registration retrospectively. Such order is also reproduced below for ready reference: -

“Reference No. : ZA061124048772N Date: 18/11/2024

To

Manjeet

Bhatnagar Colony, 1, Gali No. 7, Rohtak Road, Jind, Jind, Haryana 126102

GSTIN/UIN: 06IZDPM1347G1ZD

Application reference Number (ARN): AA061024052880J Date: 05/11/2024

Order for Cancellation of Registration

This has reference to show cause notice issued dated 25/10/2024.

Whereas reply to the show cause notice has been submitted vide AA061024052880J dated 05/11/2024; and whereas, the undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason(s):

1. Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts

2. Rule 21(a)-person does not conduct any business from declared place of business

3. Others

Remarks:

The SCN that the person does not conduct any business from declared place of business during field visit dated 14.10.2024 and it was affirmed from the son of the owner of the premise that the firm has not been functional and has not been paying rent once it got registered; further, the person could not present any valid evidence in support his claim in its reply.

The effective date of cancellation of your registration is 06/03/2024.

2. Kindly refer to the supportive document(s) attached for case specific details.- Not applicable

3. It may be noted that a registered person furnishing return under sub-section (1) of section 39 of the CGST Act, 2017 is required to furnish a final return in FORM GSTR-10 within three months of the date of his order.

4. You are required to furnish all your pending returns.

5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.”

SHAMSHER SINGH

4. In the afore quoted cancellation order it is found mentioned ther