Department Can't Issue SCN Simply Alleging Misstatement, Without Pointing Out Specific Fact Of Suppression By Taxpayer: Delhi HC

The Delhi High Court quashed an order canceling a taxpayer’s GST registration, citing that the show cause notice (SCN) lacked specific reasons for the cancellation. The court emphasized that any such drastic action requires detailed justification to ensure that the taxpayer is given an opportunity for fair representation. The ruling underscores the need for transparency and due process in tax-related decisions, especially those affecting the fundamental operational capacities of businesses.