Court No. - 10

Case :- WRIT TAX No. - 1489 of 2022

Petitioner :- R.K.Tripathi Contractors And Suppliers

Respondent :- State Of U.P. And 2 Others

Counsel for Petitioner :- Yashonidhi Shukla,Tanmay Sadh

Counsel for Respondent :- C.S.C.

Hon'ble Rohit Ranjan Agarwal,J.

Heard Sri Yashonidhi Shukla, learned counsel for the petitioner

and Sri Rishi Kumar, learned Standing Counsel for the State.

This writ petition arises out of the order dated 23.12.2021

passed by the respondent no. 3 cancelling the registration of

GST of petitioner and the order of appellate authority dated

19.10.2022 rejecting the appeal on the ground of delay in

submission of appeal.

Learned counsel for the petitioner canvassed that the appellate

authority without considering the grounds, taken in the appeal,

in a formated order has dismissed the same on the ground that

there is delay in submission of appeal.

Learned Standing Counsel, who was earlier granted time to file

counter affidavit on 02.12.2022, has prayed for further time. Sri

Rishi Kumar, learned Standing Counsel, states that as the

returns were not filed by the assessee in time a show cause

notice was issued and no reply was submitted, thus, the order

for cancellation of registration of GST was passed by the

authority. He further contended that as the appeal was not filed

in time, the appellate authority has rejected the same on the

ground of delay.

Having heard learned counsel for the parties and perused the

material on record.

From the order passed by the appellate authority, it transpires

that it has been passed on a format and the reasons shown for

rejection is delay in submission of appeal. This Court finds that

the assessee has taken grounds in his memo of appeal wherein

he has explained the delay in appraoching the appellate forum

which the first appellate authority has not considered and has

passed an order based on a format in a routine manner.

This Court finds that such type of practice cannot be accepted

from an appellate authority as the cancellation of registration of

GST affects the business of an assessee and by cancellation of

registration in a routine manner would only lead to evasion of

more taxes by a businessman. The very purpose of the

enactment of the Act of 2017 by the Parliament would frustrate

in compassing more and more business under the tax regime.

The authorities should be more sensitive while dealing with the

cancellation of registration of GST and if it is found that a

plausible explanation has been afforded by the assessee, the

authorities should pass an order so as to see that more and more

business thrives in a legal manner and no tax is evaded by any

person carrying of any business.

This Court finds that the appellate order dated 19.10.2022

passed by the first appellate authority is unsustainable in the

eyes of law as it is a non-speaking order and same is hereby set-

aside. The matter is remitted to the first appellate authority to

consider and decide the appeal afresh in accordance with law,

after affording opportunity of hearing to the assessee, within a

period of one month from the date of production of certified

copy of this order before him.

Writ petition stands partly allowed.

Order Date :- 9.1.2023

Shekhar

Digitally signed by :-

SHASHI SHEKHAR PANDEY

High Court of Judicature at Allahabad