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2023 Supreme(All) 2835
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
For the Petitioner: Shiv Prakash Dwivedi
For the Respondent: C.S.C.
Important Points
Subject
Tax Law - Goods and Services Tax
Headnote
(B) Administrative Procedure - Requirement of service of notice - Cancellation of registration without due notice or reasoning violates principles of natural justice. (Paras 3)
Facts of the case:
The petitioner contested the cancellation of GST registration, asserting non-receipt of show-cause notice and inadequate reasoning in the order of cancellation dated 14.09.2022, alongside a failed appeal due to delay.
Findings of Court:
The cancellation order dated 14.09.2022 was quashed, and the petition was allowed with directions for a fresh order following lawful procedures.
Issues: Whether proper notice was served before cancellation and if the cancellation order contained sufficient reasoning.
Ratio Decidendi: The court emphasized the need for adherence to due process and natural justice in administrative actions, citing the analogous case for guidance.
Result: The writ petition was allowed.
| 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.
