Section 29 of the CGST Act, 2017— Cancellation of Registration – The petitioner challenged the SCN dated 11.10.2022. The court observed that a perusal of the SCN reveals that the department has proceeded to cancel the GST registration of the petitioner on the ground that the petitioner is not found functioning and as such seven days time has been granted to the petitioner to file response to this. However, in the end of the notice, it has been mentioned that the petitioner's registration will stand suspended with effect from 11.10.2022. Rule 21A of the Rules, 2017, inter alia, provides for the suspension of registration, but only where the registered person himself applies for the cancellation of registration. In the instant case, the petitioner has not applied for cancellation of the registration and, therefore, there can not be any deemed suspension of petitioner's registration. Secondly, even if a suspension has to be ordered, it has to be done after affording a reasonable opportunity of hearing to the petitioner, which has not been done.

Held that:- The Hon’ble High Court issued Notice to the respondent, returnable within six weeks. Until further orders of this Court, the effect and operation of suspension order as contained in the SCN dated 11.10.2022 shall remain stayed and it will be open for the petitioner to respond to the show cause notice and to get the proceedings for the termination of the GST registration finalised.