M/S N.K Overseas vs. Union Of INDIA And 2 Others - Allahabad High Court, 21 March 2023

Cause title — parties, addresses and appearances

Court No. - 6 Case :- WRIT TAX No. - 1339 of 2022 Petitioner :- M/S N.K Overseas Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Nagendra Krishna Counsel for Respondent :- A.S.G.I., Gaurav Mahajan Hon'ble Pankaj Bhatia,J. Heard the counsel for the petitioner and Sri Gaurav Mahajan the counsel for the respondents. The present petition has been filed challenging the order dated 26.01.2021 whereby the registration of the petitioner was cancelled as well as the appellate order dated 26.08.2022 whereby the appeal preferred against the order dated 26.01.2021 was dismissed. The contention of the counsel for the petitioner is that the show cause notice was sent to the petitioner on 08.01.2021 alleging that the registration of the petitioner's shop is liable to be cancelled as he has not filed the returns for the last six months. He argues that the petitioner was not served with the show cause notice which led to the passing of the order dated 26.01.2021. He draws my attention to the tenor of the order dated 26.01.2021 which does not record any reasons for passing the order of cancellation. The petitioner preferred an appeal against the said order, which was dismissed on 26.08.2022. A perusal of the order in appeal reveals that the appellate authority recorded that the Range Officer on 26.01.2021 gave a reason for passing the order to the following effect : "The party neither attended the PH nor filled GSTR-3B & GSTR-1 returns after January 21" He further recorded that the statutory returns were not produced before the appellate authority and the same could not be verified at that stage and the appeal was liable to be dismissed. The submission of the counsel for the petitioner is that the order dated 26.01.2021 is wholly arbitrary and illegal and is in violation of the Article 14 of the Constitution of India as it records no reason

for passing the said order. He attacks the appellate order on the ground that when no reasons

were disclosed in the order dated 26.01.2021, it is inconceivable as to how the appellate authority recorded the reasons for passing the order dated 26.01.2021. He further argues that even after the cancellation of the registration as envisaged under section 29 of the Act, a window is open to seek the revocation in terms of the mandate of Section 30 of the Act. He argues that the petitioner could not file the return as after the cancellation of the registration, the returns cannot be uploaded. Considering the said submissions, prima-facie, the order dated 26.01.2021 is wholly arbitrary as it records no reason whatsoever. Challenge to the said order is squarely covered by the judgment of this Court in the case of M/s. Chandra Sain vs. U.O.I. in Writ Tax No.147 of 2022 decided on 22.09.2022. The appellate order is also perverse insofar as it records the reason given by the cancelling authority whereas no such reasons are existing in the order dated 26.01.2021. Thus, both the orders being perverse and in violation of the Article 14 of the Constitution of India are liable to be quashed and are hereby quashed. The writ petition is allowed. The matter is remanded to the respondents to pass the fresh order after providing opportunity of hearing and after considering the returns that the petitioner proposes to file after the cancellation of the registration in accordance with law. Order Date :- 22.3.2023 VNP/- VISHVANATH PRASAD SHUKLA High Court of Judicature at Allahabad