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2023 (10) TMI 941 - HC - GSTCancellation of GST registration of petitioner - Failure to furnish returns for a continuous period of six months - order passed without application of mind - violation of principles of natural justice - HELD THAT - In the present case from the perusal of the order dated 23.12.2022, clearly there is no reason ascribed to take such a harsh action of cancellation of registration. In view of the order being without any application of mind, the same does not satisfy the test of Article 14 of the Constitution of India, as such, the impugned order dated 23.12.2022 (Annexure - 3) is set aside. The petition is accordingly allowed.
Issues involved: Challenge to cancellation of registration under GST Act due to failure to file returns and lack of application of mind in the order.
Summary: The petitioner, a proprietorship concern engaged in civil contractual works, challenged the cancellation of registration under the GST Act by the Superintendent, Sector-20, Lucknow. The cancellation was based on the failure to file GST returns, as per a show-cause notice issued on 09.11.2022. The petitioner claimed non-receipt of the notice due to COVID-19 circumstances, leading to the cancellation order on 23.12.2022. The cancellation order lacked reasons and application of mind, violating the petitioner's right to business under Article 19 of the Constitution. Citing the need for reasons in administrative orders, the petitioner's challenge was upheld by the High Court. The petitioner argued that the cancellation order lacked application of mind and reasons, affecting the right to business guaranteed under the Constitution. The High Court noted that the order dated 23.12.2022 did not provide any reasons for the cancellation, violating Article 14 of the Constitution. As a result, the impugned order was set aside, and the petitioner was directed to respond to the show-cause notice within three weeks for a fresh decision by the Adjudicating Authority. The High Court emphasized the importance of providing reasons in administrative and quasi-judicial orders, as highlighted in previous judgments. The lack of reasons in the cancellation order dated 23.12.2022 led to its setting aside by the Court. The petitioner was granted the opportunity to present a defense, and the Department was directed to proceed in accordance with the law following the setting aside of the order.
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