“The universal and absolute law is that natural justice which cannot be written down, but which appeals to the hearts of all” – Victor Cousin
The Patna High Court restored GST Registration of the petitioner, Manoj Kumar Sah on the ground that there was gross violation of natural justice principles on the order cancelling the GST Registration.
The Petitioner approached the Court for directing the respondents to restore the GST registration of the petitioner with immediate effect as the petitioner is ready to furnish the returns of earlier years within one monthof the order of the Court and also for any other consequential relief or reliefs for which the petitioner is found entitled during course of hearing of this writ petition.
The Joint Commissioner of State Tax cancelled the petitioner’s registration under the provision of Section 29 of the Bihar Goods and Services Tax Act, 2017.
Section 29 (2) of the Bihar Goods and Services Tax Act, 2017 states that the proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period ofsix months;or
(d) anypersonwhohastakenvoluntaryregistrationunder sub- section (3) of section 25 has not commenced business within six months from the date of registration;or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
The Proviso to the Section states that the proper officer shall not cancel the registration without giving the person an opportunity of beingheard.
The Bench comprisingChief Justice Sanjay Karol and Justice Partha Sarthy observed that “The authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done. Not only the order is non-speaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences.”
The Court noted that the Joint Commissioner of State Tax’s order is revoked, the petitioner’s registration is reinstated, and the State of Bihar is further instructed to complete the petitioner’s assessment and/or issue the necessary orders in accordance with the law.
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