Precitech Engineers Vs State of U.P. And 2 Others (Allahabad High Court)
In Precitech Engineers vs. State of U.P. & Others, the petitioner challenged the cancellation of its GST registration via an order dated 09.12.2020 and the subsequent rejection of its appeal on 07.12.2022 for being time-barred. The petitioner contended that the show cause notice issued on 26.11.2020 failed to specify a date and time for the hearing, thereby denying them a fair opportunity to respond. The cancellation order was also alleged to be non-speaking, meaning it lacked reasoning or justification. Relying on previous Allahabad High Court rulings in M/s Jaiprakash Thekedar and M/s Chandra Sain, the petitioner argued that the order was arbitrary and violated Article 14 of the Constitution of India.
The Allahabad High Court found merit in the petitioner’s claims, noting that the cancellation order was issued without due consideration and in violation of natural justice principles. The Court ruled that the non-speaking nature of the order and the lack of a scheduled hearing rendered the decision invalid. Consequently, it set aside both the cancellation and appeal rejection orders, directing the adjudicating authority to reconsider the matter. The case was remanded for a fresh decision, with a specific directive to provide the petitioner with a proper hearing within three months.
