M/S Regimental Printing Press, The Bihar Regimental Centre vs. The State Of Bihar

Facts

The petitioner, M/s Regimental Printing Press, is aggrieved by the cancellation of its GST registration, an order dated 13.07.2021. The petitioner filed an appeal, which was rejected due to delay. The petitioner contends that the cancellation order is non-speaking and lacks reasons. The State submitted that the Assessing Officer adopted Form GST REG-19. The Court noted that Form GST REG-19 has a specific column for reasons, which was not filled. The Court also referred to a previous judgment in Manoj Kumar Sah versus The State of Bihar and Anr. which held that non-speaking orders violating principles of natural justice are liable to be quashed.

Held

The Court held that the order cancelling the petitioner's GST registration dated 13.07.2021 is a non-speaking order and suffers from illegality, violating the principles of natural justice. The Court found that no reasons were stated for the cancellation, and the subject of the notice was not even referred to in the order. This aligns with the precedent set in Manoj Kumar Sah versus The State of Bihar and Anr., where a similar non-speaking and cryptic order was quashed. The Court observed that Form GST REG-19, as adopted by the Assessing Officer, has a specific column for assigning reasons, which was not utilized. 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 registered persons to apply for revocation of cancellation if it was for failure to file returns under Section 29(2)(b) or (c), subject to filing returns and making payments. The writ petition was allowed.

Key Issues

1. Whether the order cancelling the petitioner's GST registration is a non-speaking order and violates the principles of natural justice, as argued by the petitioner? 2. Whether the Assessing Officer erred in not assigning reasons for cancellation in Form GST REG-19, as contended by the petitioner? Petitioner's Arguments: The petitioner argued that the order of cancellation of registration (Annexure-1) is non-speaking, meaning it does not provide any reasons for the decision. This lack of reasoning violates the principles of natural justice. The petitioner relied on the judgment in Manoj Kumar Sah versus The State of Bihar and Anr., which emphasized the need for authorities to refer to the show cause notice and the response thereto, and stated that cryptic orders with undecipherable reasons are illegal. Revenue's Arguments: The State submitted that the Assessing Officer adopted Form GST REG-19. The Court noted the submission but observed that the form itself requires reasons to be assigned, and the Assessing Officer appeared to believe no reasons were necessary if the assessee did not appear or file an objection.