2023 (2) TMI 129 - HC - GST

Cancellation of registration of the petitioner Firm - denial of reasonable opportunity of hearing - non-speaking order - violation of principles of natural justice - HELD THAT - This Court had not only quashed and set aside and frowned upon such action on the part of the authority concerned, but had also, at some stage, contemplated to initiate the proceedings for contempt against the officer for not abiding by the decision of this Court. Now all actions have already been initiated and also directions have come from the higher authorities. There shall not be any cause for grievance on the part of the assessee for order being non-speaking or cryptic in nature. The show cause notice dated 29.03.2022 and order of cancellation off registration dated 28.07.2022 are quashed and set aside. The registration of certificate is restored forthwith - petition disposed off.

Summary

Issues:
Challenge to proceedings initiated by show cause notice for cancellation of registration under Central Goods and Services Tax Act.

Analysis:
The petitioner challenged the proceedings initiated by a show cause notice issued by the State Tax Officer, which led to the cancellation of the petitioner's Firm registration under the Central Goods and Services Tax Act. The petitioner sought various reliefs, including quashing the show cause notice and the cancellation order, restoration of registration, and interim relief staying the order's operation. The Court issued notice and heard arguments from both parties.

In a related case, the Court highlighted the importance of adhering to prescribed forms and principles of natural justice in matters of registration, cancellation, and revocation of registration. It emphasized that reasons are crucial for any order, and the absence of reasons can lead to a denial of a fair hearing, resulting in a miscarriage of justice. The Court referred to various judgments that underscored the significance of providing reasons in decisions, stating that reasons are the heart and soul of any order.

Further, the Court cited a case where an order for cancellation of registration was quashed due to a lack of reasoned explanation in the show cause notice and the cancellation order. The Court emphasized that non-speaking or cryptic orders are unacceptable, and failure to provide reasons can lead to contempt proceedings. In the present case, the Court quashed the show cause notice and the cancellation order, restoring the registration certificate immediately. The respondent authority was directed to allow the petitioner to file returns and issue a fresh show cause notice within a specified period, ensuring the petitioner's right to a fair opportunity in accordance with the law.

Ultimately, the petition was disposed of accordingly, with the respondent authority permitted to issue a fresh notice if required by law. The judgment underscored the necessity of providing cogent, clear, and succinct reasons in decision-making processes, highlighting the importance of transparency, accountability, and adherence to principles of natural justice in administrative and quasi-judicial actions.