Wings Security Services through Proprietor Surender Kumar Arora Vs State of U.P. and another (Allahabad High Court)
The Allahabad High Court addressed a petition filed by Wings Security Services, a company challenging the cancellation of its GST registration. The company argued that the cancellation order, dated February 24, 2023, was passed without due process, as the company was unaware of the initial show cause notice and was not given an opportunity to file a response.
Upon reviewing the record, the Court found the cancellation order to be internally contradictory. The order itself stated that a reply was filed and examined on February 8, 2023, but then proceeded to cancel the registration on the grounds that “no response received.” This contradiction led the Court to conclude that the order was passed without proper application of mind by the concerned officer.
The Court determined that this lack of due process was sufficient to set aside the cancellation order without delving into other aspects of the case. The judgment effectively reinforces the principle that quasi-judicial authorities must apply their minds to the facts and follow proper procedure. The Court set aside the cancellation and remanded the matter. It directed the petitioner to file a response to the original show cause notice within 15 days, after which the respondent would be required to provide a new hearing and pass a fresh, reasoned decision. This ruling underscores the importance of a transparent and non-arbitrary process in administrative actions that affect a business’s legal standing.
