M/S Chitransh Machinery Store vs. Commissioner, Uttar Pradesh Goods And Service Tax And 2 Others

Facts

The petitioner, M/s Chitransh Machinery Store, filed a writ petition challenging two orders. The first order, dated 17.01.2022, cancelled the petitioner's GST registration. The second order, dated 17.11.2022, dismissed the petitioner's appeal against the cancellation. The appeal was dismissed solely on the grounds of limitation. The petitioner argued that the order cancelling registration was a non-speaking order and violated Article 14 of the Constitution of India. The respondent is the Commissioner, Uttar Pradesh Goods And Service Tax and two others.

Held

The Court allowed the writ petition, setting aside the order dated 17.01.2022, which cancelled the petitioner's GST registration. The Court found that the issue raised by the petitioner regarding the non-speaking nature of the cancellation order and its potential violation of Article 14 of the Constitution of India had already been decided in the case of M/s Chandra Sain (supra). Following the precedent set in that judgment, the Court applied the same analogy to the present case. The reasoning was that if a cancellation order is non-speaking, it fails to meet constitutional requirements. Consequently, the matter was remanded to the Assessing Authority to pass a fresh order after providing the petitioner with an adequate opportunity of being heard, in accordance with the law. The order dated 17.11.2022, which dismissed the appeal on limitation, was implicitly set aside as part of the remand.

Key Issues

1. Whether the order cancelling the petitioner's GST registration is a non-speaking order and thus violates Article 14 of the Constitution of India? Petitioner's Contention: The petitioner argued that the order cancelling their GST registration was a non-speaking order, failing to provide adequate reasons, and therefore contravened the principles of natural justice and Article 14 of the Constitution of India. They relied on the High Court's own judgment in M/S Chandra Sain, Sharda Nagar, Lucknow Thru. Its Proprietor vs. U.O.I. and Others; Writ Tax No.147 of 2022, decided on 22.09.2022, which dealt with a similar issue. Revenue's Contention: The judgment does not record any specific arguments from the respondent revenue authorities regarding the nature of the cancellation order or its compliance with Article 14. The appeal against the cancellation order was dismissed on the ground of limitation.