Mohammad Ezaz vs. The State Of Bihar

Facts

The petitioner, Mohammad Ezaz, challenged an order dated 12.07.2022, issued by the Superintendent of State Tax, Patna Central, GST Range, Kankarbagh, Patna, which cancelled his GST registration. The petitioner argued that this order was a non-speaking order, similar to one considered by a co-ordinate bench of the High Court in a previous case. The revenue, represented by the learned State counsel, brought to the court's notice a Notification No. 03/2023 dated 31st March, 2023. This notification provided relief to individuals whose GST registration was cancelled before 31st December, 2022, allowing them to file their pending returns by 30th June, 2023.

Held

The Court held that the impugned order of cancellation dated 12.07.2022 was a non-speaking order. However, instead of solely focusing on the invalidity of the order, the Court took into account the Notification No. 03/2023 issued by the State Government. This notification provided a specific avenue for relief by allowing individuals whose GST registration was cancelled prior to 31st December, 2022, to file their pending returns by 30th June, 2023. Since the petitioner's cancellation order was dated 12.07.2022, it fell within the scope of this notification. Therefore, the Court set aside the impugned order of cancellation and granted liberty to the petitioner to comply with the terms of the notification. The ratio decidendi is that even if an order is procedurally flawed, relief can be granted by leveraging subsequent beneficial notifications that address the underlying issue.

Key Issues

1. Whether the order of cancellation of GST registration dated 12.07.2022, issued by the Superintendent of State Tax, is a non-speaking order and therefore invalid, as argued by the petitioner, relying on the precedent set in Manoj Kumar Sah v. The State of Bihar & Anr. (CWJC No.18307 of 2022)? 2. Whether the petitioner is entitled to relief under Notification No. 03/2023 dated 31st March, 2023, which allows filing of pending returns by 30th June, 2023, for registrations cancelled prior to 31st December, 2022, given that the impugned order is dated 12.07.2022? Petitioner's Contention: The impugned order is a non-speaking order and thus suffers from illegality, as per the ruling in Manoj Kumar Sah v. The State of Bihar & Anr. Revenue's Contention: Notification No. 03/2023 provides a mechanism for relief to individuals in such situations, and the petitioner's case falls within its purview.