Case Law Details
Sunil Kumar Singh Vs State of U.P. (Allahabad High Court)
The judgment of Sunil Kumar Singh vs. State of U.P. by the Allahabad High Court (HC) addresses significant issues surrounding the cancellation of GST registration. The case revolves around Sunil Kumar Singh challenging the cancellation of his GST registration by the Assistant Commissioner, Sector 5, State Tax, Ayodhya. The petitioner argued that the cancellation lacked proper application of mind and violated procedural safeguards under Section 29 of the UPGST Act. Moreover, the appeal against the cancellation was dismissed on grounds of delay, further complicating the petitioner’s position.
Upon review, the Allahabad HC noted crucial deficiencies in the cancellation order dated 21.08.2023. The court emphasized that every administrative or quasi-judicial order must provide detailed reasons, citing past judgments that underscored the importance of reasons in upholding constitutional principles. Referring to cases like Whirlpool Corporation v. Registrar of Trademarks, the HC reaffirmed that the absence of reasons renders an order unjustifiable under law.
The HC’s verdict highlighted that the cancellation order adversely affected the petitioner’s business rights guaranteed under Article 19 of the Indian Constitution. Citing precedents such as M/s Chandra Sain and Om Prakash Mishra, where similar issues were addressed, the court quashed the cancellation order dated 21.08.2023. It directed the petitioner to file a reply to the show-cause notice within three weeks and mandated a fresh adjudication process by the Assistant Commissioner, Ayodhya.
In conclusion, the Allahabad High Court’s judgment in Sunil Kumar Singh vs. State of U.P. underscores the significance of procedural fairness and the right to reasons in administrative and quasi-judicial actions. The case serves as a reminder of the judiciary’s role in upholding constitutional guarantees against arbitrary state actions, particularly in matters affecting business operations under tax laws.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
