M/S Ambey Refrigerator vs. The State Of Bihar

Facts

The petitioner, M/s Ambey Refrigerator, a proprietorship firm, is aggrieved by the cancellation of its GST registration, as per an order dated 18.09.2022 (Annexure-3). The petitioner filed an appeal against this cancellation, but the appeal was rejected due to delay. The petitioner then approached the High Court by way of a writ petition. The petitioner contended that the order of cancellation was non-speaking. The respondents, represented by the State, submitted that the Assessing Officer adopted the form GST REG-19. The High Court noted that the Bihar Goods and Services Tax Rules, 2017, mandate specific columns for reasons in GST REG-19, which were absent in the impugned order.

Held

The Court held that the order cancelling the petitioner's GST registration dated 18.09.2022 (Annexure-3) was a non-speaking order and suffered from illegality. The Court found that the order did not state any reasons for the cancellation and did not even refer to the subject of the notice issued. This violated the principles of natural justice, as established in the case of Manoj Kumar Sah versus The State of Bihar and Anr. The Court observed that form GST REG-19, as per the Bihar Goods and Services Taxes Rules, 2017, has a specific column for assigning reasons, which was not utilized. Consequently, the Court set aside the impugned order and directed reconsideration of the issue. Additionally, the Court noted Notification No. 3 of 2023, which allows a further period up to 30.06.2023 for revocation of cancellation if it was for failure to file returns under Section 29(2)(b) or (c), subject to conditions like filing pending returns and making payments.

Key Issues

1. Whether the order cancelling the petitioner's GST registration is a non-speaking order, thereby violating principles of natural justice, as per Section 29 of the Bihar Goods and Services Tax Act, 2017? Petitioner's Arguments: The petitioner argued that the order of cancellation of registration was non-speaking, meaning it did not provide any reasons for the decision. This lack of reasoning, they contended, violates the fundamental principles of natural justice. The petitioner relied on the judgment in Manoj Kumar Sah versus The State of Bihar and Anr. (C.W.J.C. No. 18307 of 2022) which held that non-speaking and cryptic orders violating natural justice principles are liable to be quashed. Revenue's Arguments: The learned counsel for the State submitted that the Assessing Officer adopted the form GST REG-19. The State's counsel did not present any arguments disputing the non-speaking nature of the order or its compliance with natural justice principles.