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2023 (1) TMI 839 - HC - GSTSeeking restoration of GST registration - non-speaking order/ cryptic notice - in the notice only effective date of cancellation of registration was provided and no reasons were given - HELD THAT - The only ground raised is the cryptic notice, which is of 26.09.2018. Cancellation of registration dated 28.09.2018 is on the ground that there is no reasoning and nothing has been stated - The show cause notice has been submitted and hence the tax effect shown is also zero. This Court in the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat, 2022 (4) TMI 864 - GUJARAT HIGH COURT , held and observed that assignment of reasons is imperative in nature and the speaking order doctrine mandates assigning the reasons which is the heart and soul of the decision and said reasons must be the result of independent reappreciation of evidence adduced and documents produced in the case. It would serve the ends of justice in the event the petitioner is provided a fresh opportunity to respond to the fresh show cause notice. Resultantly, the writ petition deserves to be allowed and is accordingly allowed. The order dated 28.09.2018 of cancellation of registration of the petitioner passed by Commercial Tax Officer, Ghathak 17, Ahmedabad is hereby quashed and set aside. The registration of the petitioner is restored forthwith. Petition disposed off.
Issues:
Challenge to respondent authority's action regarding GST registration restoration and order quashing, limitation period for appeal, requirement of reasons in cancellation of registration orders. Analysis: Challenge to Respondent Authority's Action: The petitioner filed a petition seeking to challenge the respondent authority's action regarding the restoration of GST registration and the order quashing the registration. The petitioner prayed for the issuance of a writ of certiorari or Mandamus to restore the GST registration and quash the order dated September 28, 2018. The Court noted that the appeal preferred by the petitioner seeking revocation of registration was time-barred, and the respondent authority was justified in not acceding to the request. However, the Court did not adjudicate on the issue of limitation at that stage, as a group of petitions was pending for consideration. The cancellation of registration lacked reasoning and was decided in one line, leading to the Court's intervention. Requirement of Reasons in Cancellation Orders: The Court referred to the case of Aggarwal Dyeing and Printing Works vs. State of Gujarat, emphasizing the importance of providing reasons in administrative and quasi-judicial orders. It highlighted that reasons are crucial for ensuring natural justice and are essential for decision-making processes. The Court cited various judgments emphasizing that reasons are the heart and soul of an order, and the absence of reasons can lead to a denial of reasonable opportunity and miscarriage of justice. The Court stressed that reasons serve as a restraint on arbitrary exercise of power and facilitate judicial review. Decision and Order: Considering the legal position and facts, the Court allowed the writ petition, quashed the order of cancellation of registration passed by the Commercial Tax Officer, and restored the petitioner's registration. The respondent authority was directed to permit the petitioner to file returns and issue a fresh show cause notice within four weeks, providing the petitioner with an opportunity to respond in accordance with the law. The Court's decision aimed to serve the ends of justice by ensuring that the petitioner received a fair opportunity to respond to the notice with proper reasoning and adherence to principles of natural justice. Conclusion: The judgment by the Gujarat High Court, delivered by Honourable Ms. Justice Sonia Gokani, and Honourable Mr. Justice Sandeep N. Bhatt, highlighted the significance of providing reasons in cancellation orders, ensuring natural justice, and upholding the principles of transparency and accountability in decision-making processes. The Court's decision to quash the cancellation order and restore the petitioner's registration exemplified the importance of procedural fairness and adherence to legal principles in administrative actions.
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