HC Directs Authority to Restore GST Registration which was Cancelled without any Proper Reason

Case Details: Manoj Kumar Sah v. State of Bihar - [2023] 150 taxmann.com 5 (Patna)

Judiciary and Counsel Details

• • Sanjay Karol, CJ. & Partha Sarthy, J.
  • Ms Archana Sinha, Advocate for the Petitioner.
  • Vivek Prasad for the Respondent.

Facts of the Case

The department cancelled the GST registration of petitioner. It field writ petition to challenge the order of cancellation and contended that principles of natural justice were violated as reasons for cancellation of registration were not provided.

High Court Held

The Honorable High Court noted that the cancellation of registration entails both civil and penal consequences. The Authority ought to have referred to contents of show cause notice before passing the order.

However, in the instant case, the impugned order was non-speaking and cryptic in nature and no reason was stated for cancelling registration. Therefore, it was held that the principles of natural justice stand violated and the impugned order was liable to be quashed. The Court also directed that the registration of petitioner to be restored.