Case Law Details
Manikya Engineers And Consultants Pvt. Ltd. Vs State of U.P. (Allahabad High Court)
Introduction: In a significant legal development, Manikya Engineers and Consultants Pvt. Ltd. secured a crucial victory against the State of U.P. in the Allahabad High Court. The court, in its judgment dated, quashed the GST cancellation order imposed on the petitioner without affording them an opportunity for a fair hearing.
Detailed Analysis:
1. Unjust Cancellation Order: The court, after hearing the petitioner’s counsel and the State’s Standing Counsel, scrutinized the record. It highlighted a glaring flaw – no specific date and time were fixed for the hearing, and the petitioner was not given a chance to present their case before the cancellation order on January 25, 2023.
2. Precedent in M/s Chandra Sain Case: The judgment draws a parallel with a previous case, M/s Chandra Sain, Sarda Nagar, Lucknow Thru. Its Proprietor v. U.O.I & Ors. (Writ Tax No.147 of 2022), dated September 22, 2022. The court, in that instance, had addressed a similar issue, setting a precedent that directly applies to the present case.
3. Court’s Decision: Relying on the reasoning and logic of the M/s Chandra Sain case, the Allahabad High Court allowed the writ petition. Consequently, the court quashed the impugned orders dated January 25, 2023, and September 25, 2023.
4. Remand for Fresh Order: The matter is not concluded with the quashing of orders. The court, in a fair measure, remanded the case for a fresh order. It directed that the State passes a new order in accordance with the law, ensuring that the petitioner is given a fair opportunity of hearing.
Conclusion: This judgment serves as a beacon of justice for Manikya Engineers and sets a precedent emphasizing the importance of due process in matters of GST cancellations. The Allahabad High Court’s decision to quash the orders and remand the case reflects a commitment to upholding principles of natural justice. This legal victory underscores the significance of fair hearings in matters affecting businesses and individuals alike.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the petitioner, learned Standing Counsel for the State and perused the record.
2. From perusal of the record, it is clear that neither any date and time was fixed nor was the petitioner accorded hearing prior to passing of the impugned order of cancellation of registration on 25.01.2023 contained in Annexure – 3.
3. The issue raised in the present petition is squarely covered by a judgment of this Court in the case of M/s Chandra Sain, Sarda Nagar, Lucknow Thru. Its Proprietor v. U.O.I & Ors. (Writ Tax No.147 of 2022) Dated 22.09.2022.
4. Following the reasoning and logic as contained in the case of M/s Chandra Sain (supra), the present writ petition is allowed.
5. Impugned orders dated 25.01.2023 & 25.09.2023 are quashed.
6. The matter is remanded to pass fresh order in accordance with law after giving an opportunity of hearing to the petitioner.
