2024 (3) TMI 299 - HC - GST

Maintainability of appeal - time limitation - Cancellation of GST registration of petitioner - application 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 VERSUS STATE OF U.P. THRU. PRIN. SECY. COMMERCIAL TAX (GST) LKO. AND 2 OTHERS 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 January 17, 2023 and the appellate order dated August 2, 2023 are quashed and set aside. The petitioner is directed to file its reply to the show cause notice within three weeks from date and the adjudicating authority is directed to proceed de novo and pass order after granting opportunity of hearing to the petitioner. The writ petition is allowed.

Summary

Issues involved: Challenge to the order for cancellation of registration under the Uttar Pradesh Goods and Services Tax Act, 2017.

Details of the Judgment:

Issue 1: Lack of application of mind in the order for cancellation of registration
The petitioner challenged the order for cancellation of registration, arguing that it was passed without proper application of mind. The petitioner pointed out discrepancies in the order, where it mentioned both the submission and non-submission of a reply by the petitioner. Citing a Division Bench judgment, the petitioner emphasized the importance of reasons in judicial proceedings. The Court agreed with the petitioner, stating that the order lacked reasoning and did not satisfy the test of Article 14 of the Constitution of India. Consequently, the impugned order for cancellation of registration was set aside, and the petitioner was directed to file a reply to the show-cause notice for a fresh adjudication.

Issue 2: Importance of providing reasons in judicial and administrative orders
The petitioner also relied on a judgment emphasizing the significance of providing reasons in judicial and administrative orders. The Court reiterated that reasons are crucial in any judicial or administrative order, as they form the essence of the decision-making process. In this case, the lack of reasons in the order for cancellation of registration led to its quashing and setting aside. The adjudicating authority was directed to conduct a fresh adjudication after giving the petitioner an opportunity to present their defense.

Conclusion:
The High Court allowed the writ petition, setting aside the original order for cancellation of registration and the subsequent appellate order. The petitioner was granted the opportunity to file a reply to the show-cause notice within three weeks, and the adjudicating authority was instructed to conduct a fresh adjudication with due consideration and reasoning.