Section 29 of the CGST Act, 2017 — Cancellation of Registration –— The petitioner prayed for quashing the order dated 15-11-2021 and for quashing the notice dated 11-10-2021; for quashing the action of blocking of input tax credit and prayed for by way of interim relief to direct the respondent authorities to restore the registration and to unblock/release the input tax credit of Rs. 32,75,288/-. The court observed that there are no reasons assigned in the show-cause notice. What has been done is mere incorporation of the provisions of rule 21(b) of the Rules. If that is to be termed as reasons, then it is wondering as to how do they adjudicate such matters. In the final order, cancelling the registration, there is just one line stated "Dealer is engaged in bogus billing". The Commercial Tax Officer has not only cut a sorry figure for himself but has also made a mockery of justice. He has also made a mockery of the provisions of law. If such is the understanding of the Commercial Tax Officer, then he does not deserve to remain in office even for a day. The whole object of issuing a show-cause notice is to make the recipient of the notice understand what the authority is trying to convey and what are the nature of the allegations. A show cause notice has great significance in the adjudication proceedings for the mandatory compliance of the principles of natural justice. The SCN is the foundation on which the adjudicating authority has to build up its case. It must be a speaking and well reasoned document. The allegations and findings in the SCN should be supported by some documentary evidences. The order for blocking of ITC has outlived its statutory life period of one year.

Held that:- The Hon’ble High Court quashed the impugned order cancelling the registration and left it open to the authority to issue a fresh show-cause notice, if it intends to, but such fresh show-cause notice should contain all the necessary details and information about the alleged bogus billing to enable the assessee to file an effective reply to the same.