Kadru Infrastructure PVT. LTD. vs. The State Of Bihar

Facts

The petitioner, Kadru Infrastructure Pvt. Ltd., is challenging the cancellation of its GST registration and an assessment order under Section 62 of the Bihar Goods and Services Tax Act, 2017. The petitioner defaulted in filing returns for two periods: November 2018 to March 2019 and April 2019 to June 2019, attributing this to employee default. Its registration was cancelled, then revoked, then cancelled again. Due to the second cancellation, the petitioner could not file subsequent returns, leading to an assessment order under Section 62. The petitioner seeks relief under Notification Nos. 03 of 2023 and 06 of 2023. The impugned order of cancellation (Annexure-5) did not assign any reasons.

Held

The Court held that the order of cancellation of registration at Annexure-5 was liable to be set aside as it was a non-speaking order and did not assign any reasons, thereby violating the principles of natural justice. The Court followed its own previous decision in Manoj Kumar Sah versus The State of Bihar and Anr. for this finding. Regarding the second issue, the Court noted that the Central Government had issued Notification No. 03 of 2023, allowing a further period up to June 30, 2023, for registered persons to apply for revocation of cancellation if the cancellation was for failure to file returns. The Court also acknowledged Notification No. 06 of 2023, which provides a mechanism for compliance with assessment orders under Section 62 by filing a return within a specified period, satisfying interest and late fee liabilities. The Court directed that the petitioner would be entitled to act in accordance with these notifications and file the necessary returns. The Assessing Officer was directed to verify compliance, and if compliant, the assessment order would stand withdrawn. The issue of whether the petitioner had already complied with the requirements of Section 62(2) by filing a return within one month of the assessment order was implicitly addressed by allowing them to act under the new notifications.

Key Issues

1. Whether the order of cancellation of registration, Annexure-5, is liable to be set aside for being a non-speaking order, violating principles of natural justice, as per the Bihar Goods and Services Tax Act, 2017 and relevant rules? 2. Whether the petitioner is entitled to avail the benefit of Notification No. 03 of 2023 for revocation of cancellation of registration, and Notification No. 06 of 2023 for compliance with assessment proceedings under Section 62 of the Act? Petitioner's Arguments: The petitioner contended that the cancellation order (Annexure-5) was non-speaking and lacked reasons, thus violating principles of natural justice, relying on the High Court's decision in Manoj Kumar Sah versus The State of Bihar and Anr. They also argued for the applicability of the aforementioned notifications to grant them relief. Revenue's Arguments: The judgment does not record any specific arguments made by the revenue or state respondents.