Anil Kumar vs. The UOI And Others

Held

The Court held that the appellate order dated April 8, 2025, which dismissed the petitioner's appeal solely on the ground of delay without assigning any reasons, is unsustainable in law. The Court emphasized that reasons are the heartbeat of every conclusion and that an order without valid reasons violates the principles of natural justice. It cited the Supreme Court's judgment in Kranti Associates Pvt. Ltd. and another vs. Masood Ahmed Khan, highlighting that administrative and quasi-judicial authorities are obliged to give reasons for their decisions, and the absence thereof renders the order liable to judicial chastisement. The Court found that the appellate authority had not applied its mind to the appeal, as evidenced by the rejection being based solely on 'delay in submission of appeal' without further elaboration. Consequently, the impugned appellate order was quashed and set aside. The matter was remanded back to the Appellate Authority to proceed de novo, pass a reasoned and speaking order after giving the petitioner an opportunity of hearing, and decide the appeal expeditiously, preferably by August 14, 2025.

Facts

The petitioner, Anil Kumar, a registered taxpayer, is the owner and driver of a commercial vehicle. His GST registration was cancelled suo motu by Respondent No. 3 on March 19, 2024, under Section 29 of the CGST Act, 2017, read with Rule 21 of the CGST Rules, 2017, for non-filing of GST returns from April 2023 to February 2025. The petitioner admitted to an outstanding tax liability of Rs. 2,15,384/- but argued that cancellation was disproportionate. He filed an appeal against this order, which was dismissed by Respondent No. 2 on April 8, 2025, solely on the ground of being barred by limitation, specifically a delay of 277 days. The petitioner contended he was unaware of the cancellation order due to his accountant's health issues and that the authorities did not follow a fair procedure by not assigning reasons or providing a hearing for the delay.

Key Issues

1. Whether the appellate order dated April 8, 2025, dismissing the petitioner's appeal solely on the ground of delay, without assigning specific reasons, is legally sustainable? (Question of law) Petitioner's arguments: The petitioner argued that the appellate authority failed to follow a fair procedure by not providing reasons for dismissing the appeal on grounds of limitation and by not affording an opportunity of hearing. He contended that the cancellation of GST registration was unwarranted and disproportionate, and that the delay in filing the appeal was due to circumstances beyond his control (accountant's health issues). He relied on the principle that reasons are the heartbeat of every conclusion and that an order without valid reasons cannot be sustained, citing the Supreme Court's judgment in Kranti Associates Pvt. Ltd. vs. Masood Ahmed Khan. Respondents' arguments: The respondents argued that the appeal was rightly rejected by the authorities because there was a significant delay of 277 days in filing it.