Case Law Details
Saini Engineering And Civil Contractor Vs State of Up And 2 Others (Allahabad High Court)
The case of Saini Engineering And Civil Contractor vs. State of UP And 2 Others, heard in the Allahabad High Court, revolved around a writ petition challenging the cancellation of registration under the Uttar Pradesh Goods and Services Tax Act, 2017 (the Act). The petitioner contested two orders: one for the cancellation of registration dated January 20, 2023, issued by the Assistant Commissioner, and another dated June 15, 2023, issued by the Additional Commissioner (Appeal) GST Office, Bijnor.
The petitioner argued that the cancellation of registration was done without proper application of mind, citing discrepancies in the order’s language and lack of reasoning. The court referred to a Division Bench judgment in Surendra Bahadur Singh v. State of U.P., which emphasized the importance of reasoned orders in administrative and quasi-judicial proceedings. The court highlighted that under Article 19 of the Indian Constitution, the right to run a business is protected, and any adverse action affecting this right must be accompanied by proper reasoning as per Article 14.
The court also referred to the case of Whirlpool Corporation v. Registrar of Trademarks, Mumbai and Ors., where the Supreme Court emphasized the necessity of reasons in administrative or quasi-judicial orders. Additionally, the judgment of Om Prakash Mishra v. State of U.P. & Ors. was cited, emphasizing that reasons are the “heart and soul” of any judicial or administrative order.
The court found that the impugned order lacked reasoning and therefore did not satisfy the requirements of Article 14 of the Constitution. Accordingly, the court set aside both the original order of cancellation and the appellate order. The petitioner was directed to file a reply to the show cause notice within three weeks, and the adjudicating authority was instructed to proceed de novo, granting the petitioner an opportunity to be heard.
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