Technosun India Pvt. Ltd. Vs Union of India (Allahabad High Court)
In the case of Technosun India Pvt. Ltd. Vs Union of India, the Allahabad High Court dealt with the cancellation of GST registration for Technosun India on January 3, 2022, due to non-compliance with filing returns for six consecutive months. The petitioner, engaged in the solar equipment business, was unable to respond to the show cause notice issued on December 2, 2021, due to the unfortunate death of the petitioner’s mother from COVID-19. As a result, the GST authorities canceled the registration. The petitioner appealed the decision, but the appeal was dismissed on the grounds of limitation, with the appellate authority considering the starting point of the limitation as the date of the cancellation order.
The petitioner sought judicial review, arguing that the cancellation order was a non-speaking order and lacked the necessary reasoning, which could be scrutinized under Article 14 of the Constitution. The Allahabad High Court, following its previous judgment in M/S Chandrasen, Sarda Nagar (Writ Tax No. 147 of 2022), held that the order was issued without proper application of mind and was in violation of the principles of fairness and transparency. Therefore, the Court set aside the cancellation order and allowed the petitioner to submit a fresh response to the show cause notice. The GST authorities were directed to pass a new order after considering the petitioner’s reply, ensuring compliance with legal requirements.
