Tax Registration Cancellation Overturned: Insufficient Reasoning Invalidates Original and Appellate Orders, Petitioner Granted Opportunity to Respond

HC allowed the writ petition challenging tax registration cancellation. The court found both the original and appellate orders lacking proper reasoning and judicial application of mind. The petitioner was directed to file a reply to the show-cause notice within three weeks, with the Adjudicating Authority required to pass a fresh, reasoned decision.

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Issues:
The judgment involves a writ petition challenging the cancellation of registration under the Uttar Pradesh Goods and Services Tax Act, 2017.

Cancellation of Registration:
The petitioner challenged the cancellation of registration, arguing that the order was passed without proper application of mind. The petitioner pointed out discrepancies in the order, where it was mentioned that a reply was filed but also stated that no reply was submitted. Citing previous judgments, the petitioner emphasized the importance of providing reasons in judicial proceedings. The court noted that the cancellation order lacked reasoning and set it aside, directing the petitioner to file a reply to the show-cause notice within three weeks for a fresh decision by the Adjudicating Authority.

Appellate Order:
The petitioner also contested the appellate order, claiming that it did not disclose any application of mind. Referring to legal precedents, the petitioner argued that the quasi-judicial order adversely affected their right to conduct business, as guaranteed under the Constitution. The court agreed that the appellate order lacked reasoning and set it aside along with the original cancellation order. The petitioner was granted the opportunity to present their defense before a fresh decision by the Adjudicating Authority.

Conclusion:
In conclusion, the High Court quashed both the original order for cancellation of registration and the appellate order. The petitioner was directed to respond to the show-cause notice within three weeks for a fresh decision by the Adjudicating Authority, ensuring a fair opportunity to be heard. The writ petition was allowed with these directions.

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