2023 (10) TMI 946 - HC - GST

Violation of principles of natural justice - cancellation of GST registration - no cogent reason recorded for such cancellation - HELD THAT - From the perusal of the impugned order, it transpires that the same has been passed without recording any cogent reason for cancelling the GST registration of the petitioner no.3 and appellate authority has also dismissed the appeal filed by the petitioner (s) summarily without assigning any reason. In the recent judgment of this Court passed in the case of Namo Narayan Singh 2023 (10) TMI 482 - ALLAHABAD HIGH COURT , on an identical sets of fact held that Reason is the heart beat of every conclusion. In the absence of reasons the order becomes lifeless. Non recording of reasons renders the order to be violative of principles of natural justice. Looking to the facts and on perusal of the above-quoted judgment, it is clear that the facts of the present case is squarely covered in the aforesaid judgment, hence the impugned orders cannot sustain. The matter is remitted back to the the first appellate authority who shall pass a fresh reasoned and speaking order in accordance with law - petition allowed by way of remand.

Summary

Issues involved:
The issues involved in the judgment are the cancellation of GST registration without providing reasons and the dismissal of the appeal without assigning any reason.

Cancellation of GST registration without providing reasons:
The petitioners challenged the cancellation of their registration without being served any information or order, which was discovered when their bank account was frozen. The cancellation was based on alleged bogus Input Tax Credit without giving any opportunity or notice to the petitioners. The appellate authority dismissed the appeal without providing any reason, leading to the petitioners seeking relief through the writ petition.

Dismissal of the appeal without assigning any reason:
The impugned order cancelling the GST registration of the petitioners lacked any cogent reason, and the appellate authority summarily dismissed the appeal without providing any justification. The court emphasized the importance of giving reasons in judicial orders, citing previous judgments that highlighted the necessity of reasons to ensure transparency, fairness, and the right of litigants to understand the basis for decisions.

Judgment Summary:
The High Court entertained the Writ Tax due to the non-functionality of the GST Tribunal in Uttar Pradesh. The petitioners contested the cancellation of their GST registration without being served any information or order, leading to the freezing of their bank account. The appellate authority dismissed the appeal without reasons, prompting the court to refer to previous judgments emphasizing the necessity of giving reasons in judicial orders. The court found that the impugned orders lacked valid reasons and remitted the matter back to the appellate authority to pass a fresh reasoned order within two months, ensuring the petitioners are afforded reasonable opportunities of hearing. The writ petition was allowed, setting aside the impugned orders and emphasizing the importance of providing reasons in judicial proceedings for transparency and fairness.