2024 (4) TMI 417 - HC - GST

Validity Of order in original - Order for cancellation of registration passed without any application of mind - 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.

Summary

Issues involved:
The issues involved in this case are the cancellation of registration under the Uttar Pradesh Goods and Services Tax Act, 2017 and the lack of application of mind in passing the orders.

Cancellation of Registration:
The petitioner challenged the order for cancellation of registration dated December 30, 2022, passed by the Assistant Commissioner, State Tax, Kanpur, and the appellate order dated February 29, 2024, passed by the Additional Commissioner, Grade-2 (Appeal) Fifth, State Tax, Kanpur under Section 107 of the Act. The petitioner argued that the cancellation was done without proper application of mind, as evident from discrepancies in the order itself. The court referred to previous judgments emphasizing the necessity of providing reasons in judicial proceedings and held that the impugned orders lacked reasoning, violating the principles of Article 14 of the Constitution of India. Consequently, the court set aside the original order and directed the petitioner to file a reply to the show cause notice, allowing for a fresh decision by the Adjudicating Authority.

Lack of Application of Mind:
The petitioner contended that the cancellation of registration was done without proper application of mind, citing discrepancies in the order dated December 30, 2022. The court referred to previous judgments highlighting the importance of providing reasons in administrative or quasi-judicial orders. It was observed that the order lacked reasons and failed to meet the standards of Article 14 of the Constitution of India. Relying on precedents, the court set aside the impugned orders and directed the petitioner to respond to the show cause notice within three weeks for a fresh decision by the Adjudicating Authority.

Conclusion:
In conclusion, the High Court of Allahabad set aside the order for cancellation of registration and the appellate order, directing the petitioner to file a reply to the show cause notice. The court emphasized the importance of proper application of mind and providing reasons in administrative or quasi-judicial orders, ensuring compliance with constitutional mandates. The writ petition was allowed with the above directions, ensuring a fair opportunity for the petitioner in the proceedings.