Rajeev Ranjan Prabhakar vs. The State Of Bihar

Facts

The petitioner, Rajeev Ranjan Prabhakar, is challenging an order dated 28.07.2021 (Annexure-3) that cancelled his GST registration. He filed an appeal, which was rejected due to delay. The petitioner argues that the cancellation order is non-speaking, lacking reasons and failing to refer to the subject of the notice. The State submitted that the Assessing Officer used 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 quashed a similar non-speaking order.

Held

The Court held that the order of cancellation of registration at Annexure-3 is a non-speaking order and suffers from illegality. The Court found that the order provided absolutely no reason for the cancellation, failing to adhere to the requirements of Form GST REG-19, which mandates assigning reasons. This violates the principles of natural justice, as established in previous judgments, including Manoj Kumar Sah versus The State of Bihar and Anr. The Court set aside the impugned order (Annexure-3) and directed reconsideration of the issue. Additionally, the Court noted Notification No. 3 of 2023, which allows registered persons to apply for revocation of cancellation for failures under Section 29(2)(b) or (c) of the Act, provided returns are filed and taxes, interest, penalty, and late fees are paid up to the effective date of cancellation.

Key Issues

1. Whether the order cancelling the petitioner's GST registration, as per Annexure-3, is a non-speaking order violating principles of natural justice, and if so, what is the consequence, particularly in light of Section 29 of the Bihar Goods and Services Tax Act, 2017 and Rule 21 of the Bihar Goods and Services Tax Rules, 2017? Petitioner's Contention: The petitioner argued that the cancellation order (Annexure-3) is non-speaking, as it provides no reasons for the cancellation and does not even refer to the subject of the notice issued. This violates the principles of natural justice. Respondent's Contention: The State contended that the Assessing Officer adopted Form GST REG-19. The Court noted that while Form GST REG-19 has a column for reasons, the Assessing Officer appeared to believe no reasons were necessary if the assessee did not appear or file an objection.