Cancellation of GST Registration Without Following Proper Procedure and Assigning Reasons Is Invalid | HC

Case Details: Sunil Kumar Singh v. State of U.P. - [2024] 165 taxmann.com 430 (Allahabad)

Judiciary and Counsel Details

• Alok Mathur, J.
• Utkarsh Misra & Abhishek for the Petitioner.

Facts of the Case

The petitioner was running business of supplying goods and services. The GST department issued show cause notice to the petitioner for cancellation of registration due to non-filing of returns. The department passed cancellation order without assigning any reason and the appeal was dismissed on the ground of delay. It filed writ petition against the cancellation order.

High Court Held

The Honorable High Court noted that the cancellation order was passed without following the procedure under Section 29 of UPGST Act. Also, the order of cancellation was passed mechanically without application of mind and without assigning any reason. The Court further noted that the quasi-judicial orders affecting fundamental rights must be reasoned to comply with Article 14 of the Constitution.

Therefore, the Court held that the impugned cancellation order was liable to be set aside and the matter was remanded to Adjudicating Authority to pass fresh order after considering petitioner’s reply and giving opportunity of hearing.

List of Cases Reviewed

• Om Prakash Mishra v. State of U.P. Writ Tax No. 100 of 2022 decided on 6.9.2022 [Para 9],
• Chandra Sain, Sharda Nagar Lucknow through its proprietor Mr. Chandar Jain v. U.O.I. Through Secretary, Ministry of Finance, New Delhi Writ Tax No. 147 of 2022 decided on 22.9.2022 [Para 10]
• Whirlpool Corporation v. Registrar of Trademarks, Mumbai (1998) 8 SCC 1 [Para 11] followed.