HC remanded matter since GST registration was cancelled without mentioning any reasons

Case Details: Nidamarti Raj Tarun v. Superintendent of Central Tax - [2023] 149 taxmann.com 322 (Telangana)

Judiciary and Counsel Details

• • Ujjal Bhuyan, CJ. & N. Tukaramji, J.

Facts of the Case

The petitioner was a proprietorship concern engaged in the business of movie making. The department issued a show cause notice to the petitioner as to why GST registration of the petitioner should not be cancelled. Thereafter, order cancelling registration was passed and it was mentioned that reply of the petitioner was not found satisfactory. It filed appeal and submitted that it didn’t receive any notice but appeal was rejected.

The petitioner filed writ petition and challenged the order on the ground that it didn’t receive any notice and no reply was submitted. Also, the order was passed without assigning nay reasons.

High Court Held

The Honorable High Court noted that no reasons were mentioned in the cancellation order and order of rejection of appeal. Therefore, the Court relied on its decision in case of M/s. Chenna Krishnama Charyulu Karampudi v. Additional Commissioner Appeals [2022] 142 taxmann.com 70 (Telangana) and held that the matter was liable to be remanded back for fresh decision after opportunity of hearing since both the impugned orders were passed without application of mind.