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2024 (9) TMI 1235 - HC - GSTCancellation of GST registration of petitioner - no opportunity of hearing was given to the petitioner - violation of principles of natural justice - HELD THAT - On perusal of the order, it shows that no reason has been assigned while passing the impugned order. The Division Bench of this Court in the case of 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 has held ' In the present case from the perusal of the order dated 07.01.2023, 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 07.01.2023 (Annexure - 2) is set aside. The petition is accordingly allowed.' In view of the facts and circumstances of the case as well as law laid down by this Court, the impugned orders cannot be sustained in the eyes of law and same are hereby quashed. The writ petition succeeds and is allowed.
Issues:
Challenge to cancellation of GST registration without opportunity of hearing and application of mind. Analysis: The petitioner, engaged in construction business, challenged the cancellation of GST registration by respondent no. 4 without a hearing. The petitioner argued that the cancellation order was passed in violation of principles of natural justice as no opportunity of hearing was provided. The petitioner also contended that the order was passed without proper application of mind. The petitioner cited previous judgments to support the argument, emphasizing the need for reasons and application of mind in such decisions. The impugned order of cancellation dated 1.6.2023 was found to lack any reasons for the cancellation. The Court referred to previous judgments, including the case of Surendra Bahadur Singh, where it was held that cancellation orders without reasons or application of mind are against the principles of natural justice and constitutional rights. The Court emphasized the importance of reasons in administrative and quasi-judicial orders. Based on the precedents, the Court set aside the impugned order and directed the petitioner to file a reply to the show-cause notice and granted an opportunity of hearing before passing a fresh order. The Court also referred to the case of S.S. Traders, where the denial of an opportunity of hearing before cancelling registration was deemed to vitiate the proceedings and orders. Following the legal principles established in previous cases, the Court quashed the impugned orders in the present case. The writ petition was allowed, directing the petitioner to file a reply to the show-cause notice within a specified timeline. The adjudicating authority was instructed to proceed de novo and issue a reasoned order after providing the petitioner with a fair opportunity of hearing. In conclusion, the Court found the cancellation of GST registration without providing an opportunity of hearing and proper application of mind to be in violation of principles of natural justice and legal precedents. The Court set aside the impugned orders and directed a fresh adjudication process with due consideration of the petitioner's submissions and a reasoned decision in accordance with the law.
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