Avinash Kumar Dhiraj Vs State of Bihar (Patna High Court)
HC held that It cannot be disputed that with the passing of the GST Registration cancellation order, petitioner is liable to both civil and penal consequences. To say the least, 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 GST Registration cancellation order is nonspeaking, 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.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
Heard learned counsel for the parties.
Petitioner has prayed for the following relief(s):-
“(i) For consequential writ or order for quashing of order dated 20.10.2022 issued vide Memo No. 1829 dated 20.10.2022 passed by the Additional Commissioner, State Tax (Appeals), Patna West Division, Patna whereby the application filed for Revocation of order of cancellation bearing Appeal Case No. GST/DN-35/22-23 has been rejected;
(ii) For consequential writ or order for quashing of ex-parte order dated 20.01.2022 passed by the Joint Commissioner of State Tax, Danapur Circle, District-Patna whereby the Registration granted under the GST Act, 2017 of the petitioner has been cancelled without giving proper opportunity of filing reply and without giving opportunity of hearing;
(iii) For a direction to the respondent No. 3 to restore the registration granted under GST Act, 2017 of the petitioner firm whereby the registration of the petitioner firm was cancelled by an ex-parte order;
(iv) For a direction to the respondents for de-freezing/attaching of the Bank Account of the petitioner firm attached by the respondents.
(v) For further issuance of a direction restraining the respondent No. 3 from taking any coercive action for recovery of the amount inn demand during pendency of the present writ petition.
(vi) For grant of any relief or reliefs to which the petitioner is entitled in the facts and circumstances of the case.”
Vide order dated 20.01.2022 (Page 11 to the brief), the Joint Commissioner of State Taxes, Danapur Circle, Patna has cancelled the petitioner’s registration under the provision of Section 29 of the Bihar Goods and Services Tax Act, 2017. Prior thereto, no notice to show cause was issued to which the petitioner could respond. The order is extracted in toto as under:-
“To
AVINASH KUMAR DHIRAJ,
Sultanpur Devi Asthan, Near Larj Building, Danapur, Patna, Bihar-
801503
GSTIN/UIN:10BLLPD3742D1ZR
Application Reference No.(ARN): AA1012210014011
Date: 02/12/2021
Order for Cancellation of Registration
This has reference to your reply dated 02/01/2022 in response to the notice to show cause dated 02/12/2021
Whereas no reply to notice to show cause has been submitted;
Whereas on the day fixed for hearing you did not appear;
The effective date of cancellation of your registration is 20/01/2022 Determination of amount payable pursuant to cancellation: Accordingly, the amount payable by you and the computation and basis thereof is as follows:
The amounts determined as being payable above are without prejudice to any amount that may be found to be payable you on submission of final return furnished by you.
You are required to pay the following amounts on or before 30/01/2022 failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder.
