2024 (4) TMI 810 - HC - GST

Cancellation of registration of petitioner - order passed without any application of mind - 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 18 2021 and the appellate order dated May 24 2023 are quashed and set aside - Petition allowed.

Summary

Issues involved:
The issues involved in this case are the cancellation of registration under Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017, and the lack of application of mind in passing the original and appellate orders.

Cancellation of Registration:
The petitioner challenged the order for cancellation of registration dated March 18, 2021, passed by respondent No.4 and the appellate order dated May 24, 2023, passed by respondent No.3 under Section 107 of the Act. The petitioner contended that the cancellation was done without proper application of mind, as evident from the lack of reasons provided in the orders. The petitioner relied on previous judgments emphasizing the importance of providing reasons in judicial proceedings. The court found that the orders lacked reasoning and set them aside, directing the petitioner to file a reply to the show cause notice within three weeks and for the adjudicating authority to pass a fresh order after granting an opportunity of hearing.

Lack of Application of Mind:
The petitioner argued that the cancellation of registration was done without proper application of mind, violating the principles of natural justice and the rights guaranteed under the Constitution of India. The petitioner cited previous judgments highlighting the necessity of reasons in administrative or quasi-judicial orders. The court agreed with the petitioner, finding that the original and appellate orders lacked reasoning and were set aside. The court directed the petitioner to file a reply to the show cause notice within three weeks and for the adjudicating authority to pass a fresh order after providing an opportunity of hearing.

Conclusion:
In conclusion, the High Court of Allahabad set aside the original order for cancellation of registration dated March 18, 2021, and the appellate order dated May 24, 2023, due to the lack of application of mind and absence of reasons in the orders. The court directed the petitioner to respond to the show cause notice within three weeks and for the adjudicating authority to conduct proceedings afresh with proper consideration and opportunity for the petitioner to present their defense. The writ petition was allowed with these directions.