Cancellation of registration by way of non-speaking and cryptic order is liable to be set aside: HC

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  • Last Updated on 26 November, 2021

GST Registration - Revocation of cancelled registration - Delay in filing returns

Case Details: Brajesh Enterprises v. State of Bihar - [2021] 132 taxmann.com 147 (Patna)

Judiciary and Counsel Details

    • Sanjay Karol, CJ. and S. Kumar, J.
    • Gautam Kumar Kejriwal and Alok Kumar Jha, Advs. for the Petitioner. 
    • Vikash Kumar (SC-11) for the Respondent.

Facts of the Case

The petitioner had applied for registration and registration number was allotted to the petitioner. Since the year 2017, petitioner had been regularly filing its return and depositing all dues. However, information of the returns for certain period was not uploaded and registration number was cancelled. It challenged the cancellation order of registration by filing writ petition.

High Court Held

The Honorable High Court observed that the returns were filed subsequently along with late fee and tax liability was discharged. The department could have condoned delay in filing returns in view of Covid-19 pandemic. Despite the petitioner made a fervent request for condonation of delay in accepting the return but delay was not condoned. It was also not disputed that due to cancellation order, petitioner would be liable to both civil and penal consequences. In the peculiar facts and circumstances, the authority ought to have condoned the delay which unfortunately was not done. Also, the order was non-speaking & cryptic in nature and the reason of cancellation was not decipherable therefrom. Thus, the principles of natural justice stand violated and the order would liable to be quashed.

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