GST
TRT-2025-
Allahabad High Court
Date:-22-09-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 22 September 2022
Facts –
- The Petitioner, M/S Chandra Sain,Sharda Nagar, Lucknow Thru. Its Proprietor Mr. Chandra Sain, is a proprietorship concern engaged in civil contractual works and was registered under the GST Act.
- It was alleged that the GST returns was not filed by the counsel, accordingly a show-cause notice dated 04.02.2020 was served.
- The Petitioner contended that the E-mail address in the registration was that of the Accountant of the petitioner, as such, the petitioner did not have knowledge of the show-cause notice, thus, the reply could not be filed and an order came to be passed on 13.02.2020 whereby registration was cancelled.
- The petitioner could not prefer an appeal, which is prescribed under the Act, on account of Covid – 19 situation.
- The Appellate Authority was of the view that in view of the Bar created under Section 107(4) of the GST Act, the delay cannot be condoned.
- Aggrieved, the petitioner filed a petition.
Issue –
- Whether the cancellation of registration of the petitioner as well as the appellate order whereby the appeal was dismissed as being beyond the prescribed period of limitation is sustainable?
Order –
- The Court observed that in the present case from the perusal of the order dated 13.02.2020, there was no reason ascribed to take such a harsh action of cancellation of registration.
- The order being without any application of mind, the same does not satisfy the test of Article 14 of the Constitution of India, as such, the impugned order dated 13.02.2020 is set aside.
- The Court placed reliance on the case Om Prakash Mishra v. State of U.P. & Ors [2022] as placed by the petitioner, wherein this Court had recorded that every administrative authority or a quasi judicial authority should necessarily indicate reasons as reasons are heart and soul of any judicial or administrative order.
- Therefore the Adjudicating Authority was directed to pass fresh order after giving an opportunity of hearing to the petitioner and after considering whatever defense he may take.
- The petition was accordingly allowed.
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