GST cancellation order set aside as it was based on new grounds not mentioned in show cause notice – Allahabad High Court {Pragya Publicity Center V/s State of U.P. (2025) 31 Centax 227 (All.)}
Issues:
- Whether the GST cancellation order is valid when it is based on a ground not mentioned in the Show Cause Notice.
- Whether the cancellation order violates the principles of natural justice.
Facts:
- A Show Cause Notice was issued to the assessee for non-filing of GST returns for a continuous period of six months.
- The assessee was called upon to submit a reply and appear for a personal hearing.
- However, the cancellation order was passed on a different ground that no business was conducted from the declared place of business.
Held:
- The reason for cancellation in the order was different from the ground mentioned in the SCN.
- The assessee was never put to notice regarding the ground on which cancellation was ordered.
- No opportunity of personal hearing was granted.
- Therefore, the cancellation order was held to be violative of natural justice and was set aside under Section 29 of the CGST Act, 201
