2024 (12) TMI 53 - HC - GST

GST registration cancellation order set aside due to inadequate reasoning by tax authorities

Padma Thakuria Versus The Union Of India, The Principal Commissioner of Central Goods And Service Tax Guwahati, Additional Commissioner (Appeals) Central Goods And Service Tax Guwahati, The Superintendent Central Goods And Service Tax Guwahati.

The HC set aside the GST registration cancellation order for lack of proper reasoning. The petitioner's registration status was restored to the date of ... Cancellation of GST Registration of the Petitioner - no-filing of returns u/s 39 of the Central Goods and Services Tax Act, 2017 - cancellation of registration without assigning any reason - non-application of mind - violation of principles of natural justice - HELD THAT:- A perusal of the impugned order dated 06.04.2022 would show that the said order is passed by a quasi-judicial authority. The effect of the said order would be that in absence of a registration, the petitioner cannot carry out his business. Therefore, the effect of the said impugned order would entail civil consequences. If this Court peruses the order, it is shocking that the respondent No. 4 had cancelled the registration without assigning any reason. This clearly shows a total non-application of mind. Accordingly, this Court therefore sets aside the said impugned order dated 06.04.2022, thereby restoring the status back to the date on which the Show Cause notice dated 02.02.2022 was issued. The instant writ petition stands disposed of. The High Court set aside the order cancelling the petitioner's GST registration due to lack of reasoning, restoring the status to the date of the Show Cause notice. The respondent must reconsider the petitioner's reply and issue a reasoned order within 10 days.