M/S Uni Concept Technologies PVT. LTD. vs. The Union Of INDIA

CWJC/3362/2023HC PatnaGSTCNR BRHC01018553202310 April 2023Bench: THE CHIEF JUSTICE-,MR. JUSTICE MADHURESH PRASAD3 pages

AI SummaryAllowed

Facts

The petitioner, M/s Uni Concept Technologies Pvt. Ltd., challenged an order of cancellation of its GST registration dated January 8, 2021, issued by the Superintendent CGST, Kadamkuan Range, Patna. The petitioner argued that the order was non-speaking, relying on a previous judgment of the High Court. The State counsel brought to the court's attention Notification No. 03/2023 dated March 31, 2023, which provides relief to taxpayers who have not filed returns by allowing them to file by June 30, 2023, if their registration cancellation occurred before December 31, 2022. The petitioner's cancellation date of January 8, 2021, fell within the scope of this notification.

Held

The Court held that the impugned order of cancellation of GST registration dated January 8, 2021, was a non-speaking order. Relying on the precedent set in Manoj Kumar Sah v. The State of Bihar & Anr., the Court found the order to be procedurally deficient. However, considering the relief provided by Notification No. 03/2023 dated March 31, 2023, which allows taxpayers whose registration was cancelled before December 31, 2022, to file pending returns by June 30, 2023, the Court set aside the impugned order. The petitioner was granted liberty to comply with the terms of the notification. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the order of cancellation of GST registration dated January 8, 2021, issued by the Superintendent CGST is a non-speaking order, rendering it invalid under Section 29 of the CGST Act, 2017, and relevant rules? Petitioner's arguments: The petitioner contended that the impugned order of cancellation of registration is non-speaking, similar to the order considered in the case of Manoj Kumar Sah v. The State of Bihar & Anr. (CWJC No.18307 of 2022), and therefore, it suffers from procedural infirmity. Revenue/State's arguments: The State counsel highlighted Notification No. 03/2023 dated March 31, 2023, which offers a window for taxpayers to file pending returns and regularize their registration if the cancellation occurred prior to December 31, 2022. They argued that this notification provides a mechanism for relief in such cases.

Sections Cited

Section 29

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3362 of 2023 ====================================================== M/S UNI Concept Technologies Pvt. Ltd. a company registered under the Companies Act, having its registered office and place of business at Room No. 206, Pirmohani, Kadamkuan, District- Patna through one of its directors namely, Ajoy Kumar Singh, Aged about 56 years, Male Son of Rama Shankar Singh, Resident of Assam Valley Compound, Kaviraj Path, Pirmohani, P.O. Kadamkuan, P.S. Gandhi Maidan, District- Patna. ... ... Petitioner Versus 1. The Union of India through the Ministry of Finance, Government of India, New Delhi. 2. The State of Bihar, through the Commissioner, Department of State Taxes, Government of Bihar, Patna. 3. The Commissioner, Department of State Taxes, Government of Bihar, Patna. 4. The Additional Commissioner (Appeals), Office of Commissioner (Appeals) of Customs, Central GST and Central Excise, Patna. 5. The Superintendent CGST, Kadam Kuan, Patna. ... ... Respondents ====================================================== Appearance : For the Petitioner : Mr. Mohit Agarwal, Advocate For the State : Mr. Vivek Prasad, GP-7 For the U.O.I. : Mr. Dr. K.N. Singh, ASG with Mr. Anshuman Singh, Sr. SC. CGST & CX ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 10-04-2023 Heard learned counsel for the petitioner, learned counsel 2/3 for the State and learned senior counsel representing the Union of India.

The learned counsel for the petitioner is challenging the order of cancellation dated 08.01.2021, issued by the Superintendent of CGST, Kadamkuan Range, Patna (Respondent No. 5), as contained in Annexure-4 to the writ petition.

The learned counsel for the petitioner would rely on a decision of a co-ordinate Bench of this Court dated 10.01.2023 passed in CWJC No.18307 of 2022 titled as Manoj Kumar Sah v. The State of Bihar & Anr. and points out that the present impugned order is also a non-speaking order, as has been noticed in that judgment.

Learned State counsel points out that there is a Notification bearing No.03/2023 dated 31st March, 2023, wherein relief has been granted to the persons, who have not filed their returns, to file it on or before 30th June, 2023 if the cancellation of registration is prior to 31st December, 2022. 5. In the present case, the impugned order is dated 08.01.2021, as contained in Annexure-4 to the writ petition. In such circumstances, we set aside the impugned order, with liberty to the petitioner to comply with the Notification in its 3/3 letter and spirit.

The writ petition stands allowed with the liberty aforesaid.

Rajkishore/ Shyam Bihari/- (K. Vinod Chandran, CJ) (Madhuresh Prasad, J) AFR/NAFR NAFR CAV DATE N/A Uploading Date 11.04.2023 Transmission Date N/A

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.