Digihunter Update-Gst Registration Cancellation Without A Justification Is Invalid: Allahabad High Court..
The Allahabad High Court ruled that the GST registration cancellation without a justification is incorrect.
The Petition has been filed challenging the order whereby the registration of the petitioner was cancelled as well as the appellate order whereby the appeal was dismissed as being beyond the prescribed period of limitation.
The petitioner is a proprietorship concern engaged in civil contractual works and was registered under the GST Act. It appears that as the GST returns was not filed by the counsel, a show-cause notice was served.
Submissions
Counsel for the Petitioner argued that although no fault can be found with the appellate order dismissing the appeal as Appellate Authority does not have the power to condone the delay in terms of the scheme of the Act.
He, further argued that the quasi judicial order which has an adverse effect on the right of the petitioner to run business as guaranteed under Article 19 of the Constitution of India, the same has been done without any application of mind which is neither the intent of the Act nor can it be held to be in compliance of the mandate of Article 14 of the Constitution of India.
Decision
The single judge bench of Justice Pankaj Bhatia observed that 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.
The bench directed that the petitioner shall file reply to the show-cause notice within a period of three weeks and the Adjudicating Authority i.e. Assistant Commissioner, Lucknow shall proceed to pass fresh order after giving an opportunity of hearing to the petitioner and after considering whatever defence he may take.
Case title: M/S Chandra Sain,Sharda Nagar, Lucknow v/s U.O.I.
Citation: Writ Tax No. – 147 Of 2022