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VIVEK CHAUDHARY
Tiwari Industries – Appellant
Versus
Union of India – Respondent
JUDGMENT
Vivek Chaudhary, J.
Heard learned counsel for the petitioner and the learned Standing Counsel for the State.
2. Present petition has been filed challenging the order dated 23.01.2021 passed by the respondent no.6 whereby GST registration of the petitioner has been cancelled and the order dated 06.02.2023, whereby the Appeal No.86 of 2022, U.P. Goods and Service Tax Act, 2017 filed against the cancellation of registration has been dismissed.
3. The facts, in brief, are that the petitioner is the sole proprietary of the firm engaged in the business of motor work and was registered under GST Act. It appears that the GST return was not filed by the counsel and thereafter a show cause notice dated 10.01.2022 was issued, directing the petitioner to furnish a reply to the notice within seven working days from the date of service of the notice.
4. The case of the petitioner is that he has not been able to get the show cause notice issued by the respondent and, therefore, he could not submit the reply within the stipulated time and, thus, an order came to be passed on 23.01.2021 whereby registration of the petitioner was cancelled. Against the said order, the petitioner filed an app
The court held that cancellation of GST registration without proper notice or reasoning violates principles of natural justice, resulting in quashing the cancellation order.
The obligation to provide a reasoned order and consider the mode of service and date of knowledge for appeal timelines is crucial in administrative decisions.
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.
A cancellation of GST registration must be a speaking order, providing clear reasons for its decision, especially when it entails adverse civil consequences.
Orders lacking reasoning do not meet constitutional scrutiny under Article 14, allowing for judicial review and the right to respond to show cause notices.
Quasi-judicial orders must include reasoning; lack of justification for cancellation of registration violates principles of natural justice and the Constitution.
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