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 GST registration, ruling that the cancellation lacked proper reasoning and failed to provide sufficient grounds in the show-cause notice. The court emphasized that legal actions, particularly those impacting business operations, must adhere to principles of natural justice and transparency. This decision reinforces the importance of following procedural fairness in tax matters, especially when serious consequences such as registration cancellation are involved.