Allahabad HC Quashes GST Registration Cancellation Order for lacking fair hearing

Assaka Powerinfra Pvt. Ltd Vs State of UP And 2 Others (Allahabad High Court)

In Assaka Powerinfra Pvt Ltd vs. State of UP & Others, the petitioner challenged the cancellation of its GST registration, arguing that the suspension and cancellation orders were issued without proper notice or an opportunity for a hearing. The firm’s registration was suspended on 26.08.2022, and later canceled on 17.09.2022. The petitioner contended that the initial notice did not specify a time, date, or venue for response, violating principles of natural justice. The final cancellation order also contradicted itself by acknowledging the petitioner’s reply but then refusing to consider it. The petitioner relied on previous High Court rulings, such as M/s Precitech Engineers vs. State of U.P., which emphasized the necessity of a fair hearing before issuing adverse orders.

The Allahabad High Court found that the cancellation order was issued without due process and in violation of the principles of natural justice. The Standing Counsel for the respondents could not dispute the lack of a hearing opportunity or justify the arbitrary exercise of power. The Court ruled in favor of the petitioner, quashing both the suspension and cancellation orders. The matter was remanded to the relevant authority for reconsideration, with a directive to conduct a fresh hearing and decide the case within three months.