The Calcutta High Court quashed order of the State Tax Commissioner cancelling GST registration of proprietorship concern and held that unreasoned order cannot be sustained in law.
By means of the instant writ petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of an order passed by the Assistant Commissioner, cancelling the registration of the petitioners’ proprietorship concern M/s V.P. Construction, Lucknow.
The petitioner has also challenged the validity of an order dated 12.02.2024 passed by the Additional Commissioner, Grade-2 (Appeal) State Tax, dismissing the Defective Appeal No.1 of 2024 filed by the petitioner against the aforesaid cancellation order, only on the ground that the appeal had been filed belatedly.
The submission of the counsel for the petitioner was that the aforesaid contents of the cancellation order indicate a total non-application of mind by the authority concerned while cancelling the G.S.T registration of the petitioner as on the one hand the order states that it was being passed with reference to the petitioner’s reply but at the same time order states that the petitioner has not submitted any reply to the show cause notice. The contents of the petitioner’s reply have also not been taken into consideration while passing of the impugned order.
A Single Bench of Justice Subhash Vidyarthi observed that “Such an unreasoned order cannot be sustained in law as no judicial order can be passed without giving sufficient reasons for passing of the order. The appeal filed against the aforesaid order has been dismissed on the ground of limitation only. Bar of limitation may bar the remedy of appeal but it does not bar the petitioner’s right to seek his constitutional remedy under Article 226 of the Constitution of India, particularly when the impugned order affects valuable rights of the petitioner and the same has been passed without assigning any reason.”
“Accordingly, the writ petition is disposed of. The orders passed by the Assistant Commissioner, Sector 12, Lucknow (B) and passed by the Additional Commissioner, Grade-2 (Appeal) State Tax, Judicial Block-3, Lucknow are hereby set aside and the learned Assistant Commissioner, Lucknow Sector 12, is directed to pass a fresh order after taking into consideration the submissions made by the petitioner in the reply given in response to the show cause notice” the Court directed.
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