The petition challenged the order dated 07.01.2023, which had canceled the petitioner’s registration
under the GST Act, as well as the subsequent appellate order dated 01.07.2023 which dismissed the
petitioner’s appeal on the grounds of exceeding the prescribed limitation period.
The petitioner, a proprietorship engaged in civil contractual works and registered under the GST Act,
had its registration canceled due to non-filing of GST returns. The petitioner argued that they were not
aware of the show-cause notice due to the COVID-19 situation and subsequently fell ill, preventing them
from responding within the stipulated time. As a result, the registration was canceled on 07.01.2023.
The Court noted that the cancellation order lacked sufficient reasoning and application of mind, which
violated the petitioner’s rights under Article 14 of the Constitution of India. The Court further emphasized
that proper reasoning is essential in quasi-judicial and administrative orders. Therefore, the Court set
aside the cancellation order dated 07.01.2023 and directed the petitioner to respond to the show-cause
notice within three weeks. The Assistant Commissioner was instructed to reconsider the matter, granting
the petitioner an opportunity to present their defense and then issue a fresh order.
In light of the cancellation order being set aside, the concerned department was permitted to take
appropriate actions in accordance with the law.
SW Point of View:
The court addressed the challenge to the order canceling the petitioner’s GST registration and the subsequent dismissal of their appeal based on exceeding the limitation period. The petitioner, a civil contractor registered under the GST Act, had their registration canceled for non-filing of returns, citing COVID-19-related reasons. The court observed the lack of reasoning in the cancellation order, infringing on the petitioner’s Article 14 rights. Emphasizing the importance of proper reasoning in such orders, the court nullified the cancellation, directing the petitioner to respond to the notice and the Assistant Commissioner to reevaluate the case. The concerned department was granted the authority to take lawful actions considering the cancellation’s nullification.
Source: 2023 (8) TMI 1262 – ALLAHABAD HIGH COURT
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