2024 (4) TMI 811 - HC - GST

Cancellation of registration of petitioner - time limitation - order for cancellation of registration has been 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 April 27, 2023 and the appellate order dated March 12, 2024 are quashed and set aside - the writ petition is allowed.

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 April 27, 2023, and the appellate order dated March 12, 2024, passed under Section 107 of the Act. The petitioner argued that the registration was cancelled without proper application of mind, as evident from the lack of reasons provided in the order. The petitioner relied on previous court judgments emphasizing the importance of providing reasons in judicial proceedings. The court found that the order lacked reasoning and did not satisfy the requirements of Article 14 of the Constitution of India. Consequently, the impugned orders were set aside, and the petitioner was directed to file a reply to the show cause notice within three weeks for a fresh adjudication.

Lack of Application of Mind:
The court noted that the original order for cancellation did not provide any reasons for the drastic action taken. Citing precedents, the court highlighted the necessity for administrative or quasi-judicial authorities to indicate reasons in their orders. As the order lacked any application of mind, it was deemed to be in violation of Article 14 of the Constitution of India. The court set aside the order dated 07.01.2023 and directed the petitioner to respond to the show-cause notice, allowing for a fresh adjudication with proper consideration and opportunity for defense. The court emphasized that the lack of reasons in the order rendered it legally unsustainable, warranting its annulment.

Conclusion:
In conclusion, the High Court quashed the original order for cancellation of registration and the subsequent appellate order, directing the petitioner to file a reply to the show cause notice within three weeks. The adjudicating authority was instructed to conduct a fresh hearing and pass a new order after affording the petitioner a fair opportunity to present their case. The writ petition was allowed in favor of the petitioner based on the lack of application of mind and absence of reasons in the impugned orders.