Mahabhadra INDIA Indus. Priv. LTD. Lko. vs. The Addit. Comm. Grade Appeal Lko.
Held
The Court allowed the petition, setting aside both the order of cancellation of GST registration dated 24.06.2022 and the appellate order dated 06.12.2022. The Court followed its previous decision in Writ Tax No.145 of 2022 (Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others), which held that orders of cancellation of registration passed without reasons and without application of mind are liable to be set aside. The reasoning was that such orders do not meet the constitutional requirement under Article 14. The ratio decidendi is that an order of GST registration cancellation, if non-speaking and lacking application of mind, is invalid and can be challenged, even if the appeal against it was dismissed on limitation. The petitioner is permitted to appear before the respondent with a reply to the show cause notice and a copy of this order and the cited judgment within three weeks. The respondent is directed to pass a fresh order in accordance with law upon the petitioner's appearance.
Facts
The petitioner, Mahabhadra India Indus. Priv. Ltd., challenges an order dated 06.12.2022 by the Additional Commissioner, Grade Appeal, Lucknow, which rejected its appeal. The appeal was against an order dated 24.06.2022, by which the petitioner's GST registration was cancelled. The cancellation occurred after a show cause notice dated 20.05.2022 was issued, requiring a reply within seven working days. The petitioner claims it could not respond due to sickness. The appellate authority rejected the appeal on grounds of limitation. The petitioner relies on a previous High Court judgment in Writ Tax No.145 of 2022 (Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others).
Key Issues
1. Whether the petitioner is entitled to the benefit of the order passed in Writ Tax No.145 of 2022 (Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others) dated 26.09.2022, given that its appeal against the cancellation of GST registration was rejected on limitation grounds? Petitioner's Contention: The petitioner argues that it is entitled to the same relief as granted in the cited case. It contends that the order of cancellation of registration, being non-speaking and passed without application of mind, does not stand the test of scrutiny under Article 14 of the Constitution of India, as held in the precedent case. The petitioner relies on paragraphs 9 and 10 of the Technosum India Pvt. Ltd. judgment. Respondent's Contention: The judgment does not record any specific arguments made by the respondent (The Addit. Comm. Grade Appeal, Lko.).
Sections Cited
Section 14 of Constitution of India
AI-generated summary — verify with the full judgment below
Court No. - 4 Case :- WRIT TAX No. - 207 of 2022 Petitioner :- Mahabhadra India Indus. Priv. Ltd.
Lko.
Respondent :- The Addit. Comm. Grade Appeal Lko.
Counsel for Petitioner :- Vinay Kumar Mishra Counsel for Respondent :- C.S.C.
Hon'ble Vivek Chaudhary,J.
Heard learned counsel for the petitioner and the learned Standing Counsel for the respondents.
Present petition has been filed challenging the order dated 06.12.2022 passed by the appellate authority/respondent no.1 rejecting the appeal preferred by the petitioner against the order dated 24.06.2022 whereby G.S.T. registration of the petitioner has been cancelled with further direction to the respondents to revoke the G.S.T. registration of the petitioner.
The facts, in brief, are that the petitioner is a Registered Private Ltd.Company in the name and style of 'Mahabhadra India Industries Private Limited. It appears that the GST return was not filed by the petitioner on account of sickness and thereafter a show cause notice dated 20.05.2022 was issued, directing the petitioner to furnish a reply to the notice within seven working days from the date of service of the notice.
The case of the petitioner is that he could not re
The judgment continues below.
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