Cannot Cancel GST Registration Without Passing Reasoned Speaking Order: Allahabad High Court
The Allahabad High Court has held that while cancelling GST registrations, authorities must pass reasoned and speaking orders. It held that doing otherwise would render the order unsustainable in the eyes of the law. “Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is...
The Allahabad High Court has held that while cancelling GST registrations, authorities must pass reasoned and speaking orders. It held that doing otherwise would render the order unsustainable in the eyes of the law.
“Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is in violation of principles of natural justice,” held Justice Piyush Agarwal.
The petitioner, a real estate company, was issued a show-cause notice for cancellation of GST for failure to furnish returns. Thereafter, by means of order dated 16.05.2023, the petitioner's registration was cancelled on the same ground. Aggrieved, the petitioner approached the High Court.
The Court found that neither did the show-cause notice bear the name of the concerned officer, nor did it carry any description. It was held that once the notice did not contain such details and no opportunity of hearing was granted to the petitioner, the order passed would not be in accordance with law.
The Court relied on the judgment of the Allahabad High Court in M/s Surya Associates v. Union of India and Ors. to hold that if no reasons were given for cancellation of GST registration, the order passed would be unsustainable.
Further, the Court relied on judgment of the Supreme Court in Whirlpool Corporation v. Registrar of Trade Marks, Mumbai and Ors. to hold that such orders could be challenged before the High Court.
Accordingly, the writ petition was allowed.
Case Title: M/s Implex Infrastructure Pvt. Ltd. & Anr v. State of U.P. And 3 Ors. [WRIT TAX No. - 1915 of 2025]
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