Akshat Travels Solutions Vs State of U. P (Allahabad High Court)
The petitioner challenged the order dated 03.08.2024 cancelling its GST registration under Section 29(2)(d) of the GST Act and the subsequent appellate order dated 27.09.2025 dismissing the appeal as time-barred. The petitioner argued that the cancellation was passed without granting an opportunity of hearing and that the order was ex parte due to medical reasons preventing the petitioner from replying. It was contended that Section 29(2) of the Act grants discretionary power and cannot be exercised mechanically, and that the order was passed without proper consideration or reasoning.
The State’s counsel submitted that adequate opportunity was provided to the petitioner, which was not availed, and therefore, the cancellation could not be termed as passed without hearing.
After examining the case, the Allahabad High Court referred to its earlier judgment in M/s Chandra Sain v. Union of India, where similar issues were discussed. In that case, the Court held that while the appellate authority has no power to condone delay under Section 107(4) of the GST Act, an order cancelling registration without any reasoning or application of mind violates constitutional principles. It was observed that any quasi-judicial order affecting the right to carry on business under Article 19 must record reasons and satisfy the test of fairness and non-arbitrariness under Article 14 of the Constitution. Orders lacking reasoning or passed mechanically are liable to be quashed.
