Telangana HC slams 'mechanical way' of issuing GST show cause notice

Court says notice for cancelling registration should not be sent out in cavalier manner

The Telangana High Court has set aside a "mechanical" show cause notice and subsequent order for cancellation of goods and services tax (GST) registration against a proprietary concern.

The case relates to an assessee engaged in the business of purchasing and selling iron scrap. Show cause notices were issued to the assessee, proposing to cancel its GST registration in case it has been obtained by "means of fraud, willful misstatement or suppression of facts".

The court noted that the tax authorities have only mentioned that in case the petitioner has obtained GST registration by means of fraud, willful misstatement or