New Shanti Restaurant Vs State of Up And 2 Others (Allahabad High Court)
In the case of New Shanti Restaurant vs. State of UP and Others, the Allahabad High Court addressed the issue of rejecting GST appeals solely on the grounds of delayed submission without providing a proper explanation. The petitioner, New Shanti Restaurant, filed a writ petition challenging the rejection of its GST appeal by the appellate authorities. The petitioner argued that the appeal was rejected without any specific reasons, except for a notice citing a delay in submission. The State, represented by its counsel, defended the rejection, stating that the appeal was time-barred, and the reasoning was available on the GST portal.
However, the Court ruled that the appellate authority’s decision was inadequate as it failed to provide valid reasoning. Citing precedents from the Supreme Court, the Court emphasized that providing reasons for administrative and judicial orders is a fundamental aspect of natural justice. Without detailed reasoning, the decision becomes subjective and susceptible to challenge. The Court reiterated that any administrative or judicial authority must offer a reasoned order, as failing to do so renders the decision unsustainable.
Consequently, the Court quashed the impugned orders and allowed the writ petition. The case was remanded back to the appellate authority with instructions to reconsider the appeal and issue a fresh, reasoned order after providing the petitioner with an opportunity to be heard. The authority was directed to resolve the matter within three months.
