Maharaj Ji Enterprises Vs Union of India through the Secretary (Patna High Court)
Patna HC Slams GST Registration Rejection: Unreasoned Orders Cannot Deny Fresh Start
The petitioner’s original GST registration was cancelled due to non-filing of returns for six months. After partial compliance and payment of dues to the extent permitted by the GST portal, the petitioner applied for a fresh registration rather than revocation.
The Tax Authorities rejected the new registration application citing past cancellation and guidelines prescribed under Circular No. 95/14/2019-GST, but did so without any reasoning or reference to mandatory conditions under Section 29(2) of the CGST Act.
After examination of the facts of the case, the Court observed that the order issued by the Tax Authorities was cryptic and lacked reasoning. The Court further observed that as per the Circular issued by CBIC in this regard, the proper officer was required to verify if the cancellation was due to Section 29(2)(b) or (c) and had the applicant applied for revocation and if the conditions for cancellation still subsist.
The Court further observed that from a perusal of the documents and orders issued in this regard, it appears that none of these prerequisites were examined or recorded in the rejection order. The Court further held that filing a fresh registration is not barred by law even after cancellation. However, if the officer desires to reject application, the officer must provide specific findings before rejecting it.
