2024 (3) TMI 1089 - HC - GST

Cancellation of GST registration of petitioner - order for cancellation of registration has been passed without any application of mind whatsoever - violation of principles of natural justice - HELD THAT - In the present case the facts are similar to one in Surendra Bahadur Singh s case 2023 (8) TMI 1262 - ALLAHABAD HIGH COURT wherein the appeal was barred by time under Section 107 of the Act. However the Division Bench in Surendra Bahadur Singh s case took into consideration the original order and set aside the same being non-reasoned and allowed the petitioner therein to file reply to the show cause notice. The orders impugned herein are liable to be set aside. Accordingly the order in original dated March 25 2023 and the appellate order dated December 29 2023 are quashed and set aside - Petition allowed.

Summary

Issues involved:
The judgment deals with a writ petition challenging the cancellation of registration order and the appellate order passed under Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017.

Cancellation of Registration Order:
The petitioner challenged the cancellation of registration order, arguing that it was passed without proper application of mind. The petitioner pointed out discrepancies in the order, where it mentioned both the submission and non-submission of a reply to the show cause notice. Citing a Division Bench judgment, the petitioner emphasized the importance of providing reasons in judicial proceedings. The court noted that the cancellation order lacked reasoning and application of mind, violating Article 14 of the Constitution of India. Consequently, the court set aside the cancellation order and directed the petitioner to file a reply to the show cause notice within three weeks for a fresh decision by the adjudicating authority.

Appellate Order under Section 107:
The petitioner also contested the appellate order, highlighting the lack of reasons and application of mind in the decision-making process. Drawing parallels to previous judgments, the court reiterated the necessity of providing reasons in administrative or quasi-judicial orders. The court found the appellate order to be non-reasoned and set it aside, allowing the petitioner to respond to the show cause notice. Ultimately, the court quashed both the original cancellation order and the appellate order, directing the petitioner to file a reply within three weeks and the adjudicating authority to conduct a fresh hearing before issuing a new order.

Conclusion:
The High Court allowed the writ petition, setting aside both the cancellation of registration order and the appellate order under Section 107 of the Act. The court emphasized the importance of providing reasons in administrative decisions and directed the petitioner to participate in a fresh hearing for a new order to be issued by the adjudicating authority.