Bala Ji Medical Ajency Vs State of U.P. (Allahabad High Court)
The Allahabad High Court, in the case of Bala Ji Medical Ajency vs. State of U.P., has set aside an order canceling a proprietorship firm’s Goods and Services Tax (GST) registration. The court’s decision hinged on the finding that the show cause notice issued to the petitioner was legally flawed.
The petitioner, Bala Ji Medical Ajency, failed to file GST returns due to what they described as “unavoidable circumstances.” As a result, the tax authorities issued a show cause notice for cancellation of the firm’s GST registration. The notice gave the petitioner 30 days to reply but also scheduled a personal hearing for an earlier date, 28 days from the notice date. The petitioner claimed they were not issued a physical copy of the notice and that the notice did not specify the venue for the personal hearing. The authorities, citing the petitioner’s failure to respond or appear, proceeded to cancel the registration.
The High Court reviewed the case and found the notice to be legally unsound. The court observed that the notice required a reply within 30 days but simultaneously mandated a personal hearing before that 30-day period expired. This contradiction rendered the notice defective and, by extension, the subsequent cancellation order invalid.
