Facts of the Case: In this case, the petitioner obtained GST registration in August 2022. Due to unavoidable circumstances, the petitioner failed to file returns for the prescribed period.

On 12.03.2024, the jurisdictional officer issued a show cause notice in Form GST REG-17 proposing cancellation of the GST registration. The notice granted 30 days’ time (up to 12.04.2024) to submit a written reply. However, the notice simultaneously fixed the date of personal hearing on 09.04.2024, i.e., before the expiry of the reply period. Further, the notice did not disclose the venue/place of hearing.

The petitioner did not file any reply. On 02.05.2024, Assistant Commissioner passed a cancellation order in Form GST REG-19, cancelling the GST registration on account of non-filing of returns.

The petitioner approached the High Court challenging the notice and cancellation order on grounds of violation of natural justice and procedural infirmities.

Issue: Whether the show cause notice fixing personal hearing before expiry of the reply period and lacking essential particulars is valid in law, and whether the consequential cancellation order can be sustained.

Held that:

The Court noted that the notice dated 12.03.2024 was legally defective, as it granted 30 days’ time for reply (till 12.04.2024) but simultaneously fixed personal hearing on 09.04.2024, thereby curtailing the effective reply period. The notice did not specify the venue/place of hearing, denying the assessee clarity to respond effectively.

Such a defective SCN vitiates subsequent proceedings. Consequently, the cancellation order dated 02.05.2024 was quashed.

However, the Court clarified that the respondent authorities are at liberty to issue a fresh valid show cause notice and proceed in accordance with law.

Case Name: M/s Bala Ji Medical Ajency Thru. Proprietor Mr. Jitendra Mishra Versus State Of U.P. Thru. Addl. Chief Secy. State Tax U.P. Lko. And 2 Others dated 02.09.2025

To read the complete judgment 2025 Taxo.online 2135