Cryptic Show Cause Notice Without Factual Details Invalidates GST Registration Cancellation: Gauhati High Court
Mehak Dhiman
16 Dec 2025 5:40 PM IST
The Gauhati High Court held that a GST registration cannot be cancelled on the basis of a cryptic show cause notice, which merely quotes statutory provisions without disclosing the factual grounds.
Justice Sanjay Kumar Medhi noted that apart from stating the provisions of Section 29(2)(e) of the CGST Act, there are no facts or any details stated in the show cause notice.
In the case at hand, the assessee's/petitioner's GST registration was cancelled through a show cause notice. An order was also passed during the pendency of the first writ petition, whereby the GST registration was cancelled.
The counsel for the assessee argued that such cancellation has been done with retrospective effect, and the same was not indicated in the Show Cause Notice.
It was further contended that the notice was cryptic in nature, as apart from quoting the relevant provisions of law, there was no factual aspect on which the show cause notice was issued, as a result of which, the assessee was deprived of a reasonable opportunity to submit an effective reply.
The department submitted that the opportunity was granted to the assessee and though the notice by e-mail had contained the provisions of law, there was an attachment which, however, could not be sent to the e-mail address. So far as the hard copy of the show cause notice along with enclosures is concerned, the same had returned back un-served.
The department further submitted that the assessee has evaded receipt of the enclosures to the show cause notice being served upon him and is trying to take advantage of his own wrong. The cancellation of the registration by giving a retrospective effect is permissible in law.
The bench examined the Show-Cause Notice and observed that apart from stating the provisions of Section 29(2)(e) of the Central Goods and Services Tax Act, 2017, there are no facts or any details stated. There is, however, an indication in the notice that supportive documents are attached for specific details.
The bench noted that the attachment in the e-mail would not be served in the e-mail ID of the assessee, and also, the hard copies had bounced back.
The bench observed that the department has placed before the Court the attachment to the show cause notice containing the materials on which the same has been issued.
In view of the above, the bench set aside the impugned order of cancellation and granted a fresh opportunity to the assessee to file a reply.
Case Title: Pritam Sovasaria v. The Union of India and Ors.
Case Number: WP(C)/4700/2025
Counsel for Petitioner/Assessee: A. Gopal
Counsel for Respondent/Department: S. K. Medhi, M. Das, S. Chetia, S. C. Keyal, S. P. Upadhyay, B. Gogoi