One Place Infrastructure Vs State of Up And 2 Others (Allahabad High Court)
The Allahabad High Court addressed a petition filed by One Place Infrastructure, a private company whose GST registration was canceled by an ex-parte order. The company’s appeal was also dismissed on the grounds of being filed beyond the statutory time limit. The company contested both orders, arguing they were passed in violation of natural justice principles and Article 19(1)(g) of the Indian Constitution, which guarantees the right to practice any profession or to carry on any occupation, trade or business.
The Court’s primary focus was on the procedural integrity of the cancellation order. It found that the initial show cause notice was defective because it did not specify which proper officer the petitioner was required to appear before. The Court also noted that the petitioner became aware of the cancellation much later, in January 2024, despite the order being dated May 2, 2023. These factors led the Court to conclude that the cancellation was done without providing a proper notice or an opportunity for a personal hearing, which is a fundamental requirement of natural justice.
The Court further stated that the ex-parte cancellation order was a quasi-judicial decision that adversely affected the petitioner’s right to conduct business. It found the order to be devoid of any reasons and passed without the required application of mind. The Court referred to its own prior rulings in M/s Surya Associates vs. Union of India and Ashok Kumar Vishwakarma, as well as the Supreme Court’s precedent in Whirlpool Corporation vs. Registrar of Trade Marks. These precedents affirmed that if a quasi-judicial order, such as a GST registration cancellation, is passed without reason, the order cannot be legally upheld. The Court also stated that in such cases, the principle of res judicata, or doctrine of merger, does not apply, which would have prevented the Court from hearing a case that had already been heard by an appellate body.
