HC Quashes Cancellation Order of GST Reg. Without Giving Any Reason

The Order cancelling the GST registration that was given without providing a justification was rejected by the Patna High Court (HC).

Manoj Kumar Sah, the petitioner, asked the court to order the respondents to immediately restore the petitioner’s GST registration since he is prepared to provide previous years’ returns within one month of the court’s decision.

It was clear that the petitioner’s registration under Section 29 of the Bihar Goods and Services Tax Act, 2017, had been revoked by a decision dated 12.09.2019 from the Joint Commissioner of State Tax, Madhubani.

The petitioner is subject to civil and penal penalties in accordance with the aforementioned order. At the very least, the authority should have mentioned the details of the show cause and the answer to it, but it did not.

It was argued that the order is not only non-speaking but also cryptic in nature, making it impossible to interpret the cancellation’s cause. The petitioner claimed that the principle of natural justice had been breached.

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A Coram comprising Chief Justice Sanjay Karol and Justice Partha Sarthy ruled that the order on 12/09/2019 issued via respondent no.2, namely the Joint Commissioner of State Tax, Madhubani, Bihar is revoked with the restoring of the applicant’s registration, with a further direction to the respondent no.1, namely The State of Bihar through Commissioner of State GST, New Secretariat, Patna to finalize the petitioner’s assessment and/or pass appropriate orders, by law.

Ms Archana Sinha, Advocate appeared for the applicant and Mr Vivek Prasad appeared for the respondent.