2022 (3) TMI 855 - HC - GST

Cancellation of Registration Quashed: Non-Speaking Order with False Claims Shows Non-Application of Mind by Authorities

Galaxy Mechanical Engineering Equipments Private Limited & Anr. Versus Assistant Commissioner, Bally, West Bengal Goods and Services Tax & Ors.

The HC set aside the cancellation of registration order as a non-speaking order that falsely claimed consideration of a non-existent reply, indicating ... Cancellation of registration of the petitioner - Order passed without providing any opportunity of hearing to the petitioner - violation of principles of natural justice - HELD THAT:- The allegation of the petitioner is correct since no reason has been given in the impugned order of cancellation and is non-speaking order and is not sustainable in law and accordingly the impugned order of cancellation of registration of the petitioner is set aside and all legal consequences will follow. So far as part of the impugned show-cause notice for cancellation of registration, where registration of the petitioner has been suspended this part of the impugned order will remain suspended since the allegation in the impugned show-cause notice is very vague and one line allegation without any basis and for the ends of justice a person against whom a show-cause notice has been issued, he should be at least provided in brief the basis of such allegation so that the person can meet the allegations in show-cause notice. Petition disposed off. Issues:Challenge to show-cause notice for cancellation of registration and suspension of registration, lack of opportunity of hearing, non-speaking order, non-application of mind, vagueness of allegations in show-cause notice.Analysis:The petitioner challenged the impugned show-cause notice for cancellation of registration and suspension of registration, alleging lack of opportunity of hearing. The petitioner further contended that the order of cancellation was a non-speaking order, indicating non-application of mind as it falsely claimed consideration of a reply that was never provided. The court found merit in the petitioner's argument regarding the non-speaking nature of the order of cancellation and set it aside, emphasizing that legal consequences would follow. Regarding the suspension of registration, the court noted the vagueness of the allegations in the show-cause notice, emphasizing the importance of providing a brief basis for such allegations to enable the affected party to respond effectively. Consequently, the court ordered the suspension to remain in place until a reply is submitted, a hearing is conducted, and a reasoned and speaking order is passed in accordance with the law.This judgment highlights the significance of providing a fair opportunity for a party to be heard before taking adverse actions such as cancellation or suspension of registration. It underscores the necessity of issuing orders that are reasoned and speaking, with clear justifications for the decisions made. The court's decision to set aside the non-speaking order of cancellation and suspend the registration pending a proper hearing demonstrates a commitment to upholding principles of natural justice and ensuring procedural fairness in administrative actions.