Section 29 of the CGST Act, 2017 — Cancellation of Registration –-- The petitioner challenged orders dated 12.10.2022, whereby the respondent cancelled the GST registration of the petitioner. The Court observed that no specific reason has been detailed in the SCN and the respondent has simply mentioned that the petitioners have obtained registration by means of fraud, wilful misstatement or suppression of facts. On such surmises and conjectures, no SCNs could have been issued by the respondent. Issuance of SCN for cancellation of GST registration has got serious consequences and could not have been issued in such a cavalier manner. The petitioners submitted reply to SCN on 12.10.2022 and on the very same day, the impugned orders were passed. The SCNs were issued and the impugned orders were passed in a most mechanical manner exhibiting complete non application of mind.  

Held that:- The Hon’ble High Court set aside the impugned orders for cancellation of registration dated 29.09.2022 and directed the Principal Commissioner of Central Tax, Hyderabad to look into the conduct and functioning of the first respondent and thereafter take remedial steps.