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Tax Registration Cancellation Overturned: Lack of Proper Reasoning Invalidates Original and Appellate Orders Under Section 107 HC allowed the writ petition challenging tax registration cancellation under Section 107. The court found both the original and appellate orders lacking ...
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Tax Registration Cancellation Overturned: Lack of Proper Reasoning Invalidates Original and Appellate Orders Under Section 107
HC allowed the writ petition challenging tax registration cancellation under Section 107. The court found both the original and appellate orders lacking proper reasoning and application of mind, violating constitutional principles. The petitioner was directed to file a reply within three weeks, and the adjudicating authority was instructed to conduct a fresh hearing and issue a reasoned order.
Issues involved: The judgment deals with a writ petition challenging the cancellation of registration order and the appellate order passed under Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017.
Cancellation of Registration Order: The petitioner challenged the cancellation of registration order, arguing that it was passed without proper application of mind. The petitioner pointed out discrepancies in the order, where it mentioned both the submission and non-submission of a reply to the show cause notice. Citing a Division Bench judgment, the petitioner emphasized the importance of providing reasons in judicial proceedings. The court noted that the cancellation order lacked reasoning and application of mind, violating Article 14 of the Constitution of India. Consequently, the court set aside the cancellation order and directed the petitioner to file a reply to the show cause notice within three weeks for a fresh decision by the adjudicating authority.
Appellate Order under Section 107: The petitioner also contested the appellate order, highlighting the lack of reasons and application of mind in the decision-making process. Drawing parallels to previous judgments, the court reiterated the necessity of providing reasons in administrative or quasi-judicial orders. The court found the appellate order to be non-reasoned and set it aside, allowing the petitioner to respond to the show cause notice. Ultimately, the court quashed both the original cancellation order and the appellate order, directing the petitioner to file a reply within three weeks and the adjudicating authority to conduct a fresh hearing before issuing a new order.
Conclusion: The High Court allowed the writ petition, setting aside both the cancellation of registration order and the appellate order under Section 107 of the Act. The court emphasized the importance of providing reasons in administrative decisions and directed the petitioner to participate in a fresh hearing for a new order to be issued by the adjudicating authority.
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