Mohammad Rofiqul Islam vs. Union Of INDIA And 3 Ors.

Held

The Court held that the impugned order dated March 23, 2023, passed by the Assistant Commissioner (Respondent No. 4) cancelling the Petitioner's GST registration, was unsustainable. The Court found the order to be shocking due to its complete lack of justifiable reasons, stating only "Registration is cancelled", which indicated a total non-application of mind. The Court reasoned that such an order, having civil consequences for the Petitioner's business, must be supported by proper reasoning. Consequently, the Court set aside the order dated March 23, 2023. The Court also noted that the Petitioner had filed his returns in the meantime and granted liberty to the Petitioner to file an additional reply to the Show Cause notice within ten days, bringing this fact and any other relevant grounds to the notice of the Assistant Commissioner. The Assistant Commissioner was directed to take due steps in accordance with the law thereafter. The status was restored to the date of the Show Cause notice.

Facts

The Petitioner, Mohammad Rofiqul Islam, was granted GST registration on August 29, 2019. Due to financial hardship, he failed to file his returns. A Show Cause notice was issued by the Assistant Commissioner (Respondent No. 4) on January 15, 2023, proposing cancellation of registration for non-filing of returns under Section 39 of the CGST Act, 2017, and suspending the registration effective the same date. The Petitioner claims to have filed returns thereafter. However, on March 23, 2023, the Assistant Commissioner cancelled the registration stating only "Registration is cancelled". The Petitioner filed a writ petition challenging this order.

Key Issues

1. Whether the order cancelling the Petitioner's GST registration, passed by the Assistant Commissioner (Respondent No. 4) on March 23, 2023, is a valid quasi-judicial order, considering it lacks justifiable reasons and demonstrates a non-application of mind? Petitioner's arguments: The Petitioner contended that the impugned order of cancellation dated March 23, 2023, was passed without proper application of mind, as it merely stated "Registration is cancelled" without providing any justifiable reasons. This lack of reasoning renders the order invalid and has civil consequences for his business. The Petitioner also highlighted that he had subsequently filed his returns. Revenue's arguments: The judgment does not record any specific arguments made by the Revenue or the respondents.