‘No Reasons for Such a Harsh Action’: Allahabad HC Quashes Ex-Parte GST Registration Cancellation [Read Order]

The Allahabad High Court has quashed an ex-parte GST ( Goods and Services tax ) registration cancellation order, observing that the authorities offered “no reasons for such a harsh action”. The court said that non-application of mind will fail the test of Article 14.

The petitioner, M/s Maa Construction and Supplier Company, had challenged the cancellation order dated 19 October 2024 issued under Section 29(2)(d) of the GST Act, with the appellate order dated 31 October 2025, which dismissed the appeal solely on the ground of limitation.

The petitioner, through their counsel, Adv. Satish Kumar Pandey argued that no opportunity of hearing was granted before cancellation and that the order was passed mechanically, without application of mind, resulting in denial of its right to continue business.

The Court found merit in the arguments of the petitioner side. It noted that the order contained no reasoning whatsoever, despite the fact that cancellation of registration has severe consequences for a running business.

While the State contended that opportunity had been provided and ignored by the petitioner, the High Court observed that the record did not demonstrate any meaningful consideration of the petitioner’s case.

The bench, following on its earlier ruling in M/s Chandra Sain v. Union of India, it said that the quasi-judicial orders must contain reasons, as they directly impact the fundamental right to conduct business under Article 19(1)(g).

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Justice Jaspreet Singh observed that “In the present case from the perusal of the order dated 19.10.2024, clearly there is no reason ascribed to take such a harsh action of cancellation of registration. In view of the order being without any application of mind, the same does not satisfy the test of Article14 of the Constitution of India, as such, the impugned order dated 19.10.2024 is set aside.”

As a result, the High Court found that the cancellation order had the same faults found in those previous decisions, including a violation of natural justice, a lack of reasoning, and a lack of application of mind.

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