Suraj Kumar Upadhyay Vs State of U.P. And 2 Others (Allahabad High Court)
In a recent ruling, the Allahabad High Court has set aside a Goods and Services Tax (GST) registration cancellation order, emphasizing that administrative decisions affecting a business must be supported by clear and reasoned grounds. The court’s judgment came in the case of Suraj Kumar Upadhyay Vs State of U.P. And 2 Others, where the petitioner’s GST registration was cancelled without proper justification, and a subsequent appeal was dismissed on a technicality.
The petitioner, a firm engaged in various business activities, had its GST registration cancelled by the Assistant Commissioner, State Tax, on April 20, 2022. The cancellation followed a show-cause notice issued for the alleged failure to file returns for a continuous period of six months. The petitioner argued that the cancellation order was flawed for two main reasons. First, it lacked any specific grounds for cancellation. Second, the order contained a contradiction, noting that a reply had been submitted on April 19, 2022, but then stating that no reply was received, a clear indication that the order was passed without due consideration of the facts.
Following this, the petitioner’s appeal to the Additional Commissioner was also dismissed. The appellate authority did not address the merits of the case, rejecting the appeal solely on the grounds of “latches,” or delay.
