HC Sets Aside Non-Speaking GST Registration Cancellation; Remands Matter to Adjudicating Authority

Case Details: Precitech Engineers v. State of U.P. - [2023] 150 taxmann.com 214 (Allahabad)

Judiciary and Counsel Details

• • Pankaj Bhatia, J. 
  • Shubham Agrawal for the Petitioner. 
  • C.S.C. for the Respondent.

Facts of the Case

The petitioner received a show cause notice proposing cancellation of registration from the department wherein the petitioner was called within a period of seven working days to submit a report and to appear for personal hearing. It didn’t reply and registration was cancelled.

It filed appeal against the cancellation order and contended that order was non-speaking but the appeal was rejected on the ground that the same was filed beyond the prescribed period of limitation. Therefore, the petitioner filed writ petition seeking restoration of registration and challenged the impugned order.

High Court Held

The Honorable High Court noted that the impugned order of cancellation of registration was completely non-speaking order and prima facie without application of mind. Moreover, the notice issued by the department for cancellation of registration didn’t provide time or any specific date for personal hearing. Therefore, the Court held that the impugned order was liable to be set aside and matter was remanded to the adjudicating authority for passing a fresh order, in accordance with law, after giving opportunity of hearing to the petitioner.