Manoj Kumar Sah Son of Babu Saheb Sah Vs State of Bihar (Patna High Court)
The Hon’ble Patna High Court in the matter of Manoj Kumar Sah v. The State of Bihar through Commissioner of State GST & Anr. [Civil Writ Jurisdiction Case No.18307 of 2022 dated January 10, 2023] set aside the order of cancellation of the Goods and Service Tax (“GST”) Registration of the assessee and held that the cancellation of the GST Registration through a non-speaking order without mentioning the grounds for such cancellation is cryptic in nature and violates the principles of natural justice.
Facts:
Mr Manoj Kumar Sah (“the Petitioner”) filed the writ petition against the order of cancellation of the GST Registration. The Petitioner contended that his GST registration was cancelled without considering his reply to the Show Cause Notice (“SCN”) and without granting him the opportunity of personal hearing. Further, no reason for cancellation of the GST Registration was provided in the order.
Issue:
Whether the GST Registration can be cancelled without mentioning any reasons?
Held:
The Hon’ble Patna High Court held as under:
- The Joint Commissioner of State Tax (“the Respondent”) did not refer to the Petitioner’s reply to the SCN while passing the order as a result of which the Petitioner would become liable to both civil and penal consequences.
- The order being a non-speaking order was cryptic in nature. Further, the reason for cancellation was not decipherable from the order. Thus, the order violates the principles of natural justice.
Therefore, the Hon’ble Patna High Court set aside the order of cancellation of the GST Registration and directed the Respondent to restore the GST Registration of the Petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
Petitioner has prayed for the following relief(s):
“a) 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 1 months of the order of this Hon’ble Court.
b) For any other consequential relief or reliefs for which the petitioner is found entitled during course of hearing of this writ petition.”
Vide order dated 12.09.2019 (Page 8 to the brief), the Joint Commissioner of State Tax, Madhubani, has cancelled the petitioner’s registration under the provision of Section 29 of the Bihar Goods and Services Tax Act, 2017. The order is extracted in toto as under:-
“Reference Number: ZA100919015537H
Date: 12/09/2019
To
MANOJ KUMAR SAH
WARD NO 14, J P COLONY,
MADHUBANI, Bihar, 847211
GSTIN/UIN:10BUTPS7873M1ZN
Application Reference No. (ARN): AA1008190183957
Dated:21/08/2019
Order for Cancellation of Registration
This has reference to your reply dated 31/08/2019 in response to the notice to show cause dated 21/08/2019
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 12/09/2019
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 22/09/2019 failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder.
