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IN THE HIGH COURT OF ALLAHABAD
PANKAJ BHATIA, J.
Bhumi Tech India Networking - Petitioner
Versus
Commissioner, Commercial Tax And 2 Others - Respondents
WRIT TAX NO.215 OF 2023.
Decided On : 30-11-2023
| Table of Content |
|---|
| 1. challenge to gst registration cancellation (Para 2) |
| 2. arguments on error in show-cause notice (Para 3 , 4) |
| 3. order quashed based on precedent (Para 5) |
| 4. writ petition allowed with order quashing (Para 6 , 7) |
JUDGMENT
Pankaj Bhatia, J.
Heard learned counsel for the petitioner and learned Standing Counsel for the State.
2. Present petition has been filed challenging the order dated 14.09.2022 whereby the GST registration granted to the petitioner was cancelled and further the appeal preferred by the petitioner was dismissed on the ground of delay.
3. Contention of counsel for the petitioner is that the order passed refers to a show-cause notice dated 31.08.2022 and a reply filed by the petitioner on 09.09.2022 whereas neither the show-cause notice was ever served upon the petitioner nor the petitioner gave any reply. He further argues that even otherwise, the order of cancellation is bereft of any reasoning.
4. In short, the submission is that the issue raised in the present case is squarely covered by a judgment of this Court in the case of M/s Chandra Sain, Sarda Nagar, Lucknow Thru. Its Proprietor v. U.O.I & Ors. (Writ Tax No.147 of 2022) on 22.09.2022.
5. In view of the reasoning as recorded in the case of M/s Chandra Sain (supra) and the facts being similar, the order cancelling the registration dated 14.09.2022 cannot be sustained and is quashed with liberty to the respondents to pass a fresh order after issuing a show-cause notice in accordance with law and after considering the defense, if any.
6. In view of the fact that order dated 14.09.2022 has been quashed, the order dated 25.09.2023 also loses significance and is quashed.
7. The writ petition stands allowed in above terms.
The court held that cancellation of GST registration without proper notice or reasoning violates principles of natural justice, resulting in quashing the cancellation order.
Cancellation of GST registration without a hearing violates principles of natural justice and Article 14 of the Constitution.
The importance of providing detailed reasons for cancellation of registration and the need for compliance with the principles of natural justice.
Cancellation of GST registration must follow due process, including a clear show-cause notice and a reasoned order, to uphold the principles of natural justice.
Quasi-judicial orders must include reasoning; lack of justification for cancellation of registration violates principles of natural justice and the Constitution.
Orders lacking reasoning do not meet constitutional scrutiny under Article 14, allowing for judicial review and the right to respond to show cause notices.
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