M/S Balaji Constructions And Supplier, Sitapur Thru. Prop. Jangbahadur vs. Union Of INDIA Thru. Prin. Commssoner Central G.S.T., Lucknow And Others

Held

The Court held that the order cancelling the petitioner's GST registration, dated 09.01.2023, was passed without recording any reasons. This issue was directly covered by the Court's previous judgment in M/s Chandra Sain (supra). Following the precedent set in M/s Chandra Sain, the Court found the cancellation order to be unsustainable. Consequently, both the order of cancellation dated 09.01.2023 and the appellate order dated 24.11.2023, which dismissed the appeal as time-barred, were quashed. The matter was remanded for fresh adjudication before the Assessing Authority. The Assessing Authority is directed to pass a fresh order after providing an opportunity of hearing to the parties, and the petitioner is required to file a reply to the show cause notice. The ratio decidendi is that an order cancelling GST registration must record reasons, and failure to do so renders the order invalid, irrespective of the appellate authority's finding on limitation.

Facts

The petitioner, M/s Balaji Constructions and Supplier, through its Proprietor Jangbahadur, filed a writ petition challenging two orders. The first order, dated 09.01.2023, was passed by the Superintendent, CGST Range-Sitapur, cancelling the petitioner's GST registration. The second order, dated 24.11.2023, was passed by the Additional Commissioner Grade (Appeal) Custom, CGST and Central Excise, Lucknow, dismissing the petitioner's appeal against the cancellation as time-barred. The petitioner argued that the order cancelling registration provided no reasons. The tax period is not specified. The amount in dispute is not stated. The procedural history involves the cancellation of registration, an appeal filed by the petitioner, and the dismissal of that appeal.

Key Issues

1. Whether the order cancelling the petitioner's GST registration is liable to be quashed for non-compliance with the requirement of recording reasons, as per the law laid down by this Court? (Question of law). The petitioner contended that the order cancelling registration lacked any reasons, which is a violation of due process and settled law. They relied on the judgment of this Court in M/s Chandra Sain Vs. U.O.I. and others; WRIT TAX No. 147 of 2022 decided on 22.09.2022. The respondent's arguments are not recorded in the judgment.