2024 (4) TMI 414 - HC - GST

Validity Of order in original - Order for cancellation of registration passed without any application of mind - appellate order u/s 107 - 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 u/s 107 of the Act. However the Division Bench 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. Thus the orders impugned herein are liable to be set aside. Accordingly the order in original and the appellate order are quashed and set aside. Thus the writ petition is allowed.

Summary

Issues involved: Challenge to cancellation of registration under Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017 for lack of application of mind, contradictory statements in the order, absence of reasons, and violation of constitutional rights.

Summary:

Cancellation of Registration Order:
The petitioner challenged the cancellation of registration order dated March 1, 2023, under Article 226 of the Constitution of India, citing lack of application of mind and contradictory statements in the order. The petitioner argued that the order was passed without proper consideration, as evident from the conflicting statements regarding the petitioner's reply to the show cause notice. The Court noted the importance of providing reasons in judicial proceedings, emphasizing that the absence of reasons in the order rendered it non-reasoned and violative of the petitioner's right to run a business as guaranteed under Article 19 of the Constitution of India. Relying on precedents, 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 adjudication.

Appellate Order under Section 107:
The petitioner also challenged the appellate order dated March 15, 2024, passed under Section 107 of the Act. The Court found that the appellate order, which dismissed the appeal without considering the merits, lacked application of mind and failed to provide any reasons for the decision. Citing the necessity of indicating reasons in administrative or quasi-judicial orders, the Court set aside the appellate order, highlighting that the doctrine of merger did not apply as the appeal was not decided on its merits. The Court directed the adjudicating authority to pass a fresh order after affording the petitioner an opportunity to present their defense.

Conclusion:
In conclusion, the High Court quashed and set aside both the original cancellation of registration order and the appellate order. The petitioner was granted the opportunity to file a reply to the show cause notice within three weeks, and the adjudicating authority was instructed to conduct a fresh adjudication after providing a hearing to the petitioner. The writ petition was allowed with the aforementioned directions.