M/S Aravali Infra Developers,Bahraich Thru… — Writ and Judicial Review | Allahabad HC (2024)

M/S Aravali Infra Developers,Bahraich Thru… — Writ and Judicial Review | Allahabad HC (2024)

What the court decided

AI extract

Outcome

Writ petition allowed; the cancellation order of the Assistant Commissioner, Sector-1, Bahraich and the appellate dismissal by the Additional Commissioner, Grade-2 (Appeal) State Tax, Gonda are set aside; fresh order directed to be passed after considering the petitioner's reply dated 06.06.2022 to the show cause notice dated 02.06.2022; liberty reserved to Respondent No.3 to initiate fresh proceedings in accordance with law.

Issue for consideration

Whether the cancellation order dated 12.07.2022, which refers to the petitioner's reply dated 06.06.2022 while simultaneously recording that no reply to the show cause notice was submitted, is vitiated by non-application of mind and is an unreasoned order liable to be set aside. +1 more

Court's answer

The writ petition is allowed and the orders dated 12.07.2023 (as printed) passed by the Assistant Commissioner, Sector-1, Bahraich and dated 12.04.2024 passed by the Additional Commissioner, Grade-2 (Appeal) State Tax, Gonda are set aside.

Ratio / Principle

The learned Assistant Commissioner, Lucknow Sector 2 (as printed) is directed to pass a fresh order after taking into consideration the submissions made by the petitioner in the reply dated 06.06.2022 given in response to the show cause notice dated 02.06.2022.

Key takeaways

Respondent No.3 is at liberty to initiate fresh proceedings in accordance with law after giving adequate opportunity to the petitioner to present his case and after taking into consideration the pleas taken by the petitioner, if any.ratio¶17

Detailed headnote1 paragraphs

WRIT TAX petition under Article 226 of the Constitution of India by M/s Aravali Infra Developers, Bahraich (through proprietor Farhan Shavez) challenging (i) the order dated 12.07.2022 of the Assistant Commissioner, Sector-1, Bahraich cancelling the G.S.T registration of the petitioner's proprietorship, and (ii) the order dated 12.04.2024 of the Additional Commissioner, Grade-2 (Appeal) State Tax, Gonda dismissing the appeal against the cancellation order solely on the ground that it was filed belatedly. The cancellation order, while referring to the petitioner's reply dated 06.06.2022 to the show cause notice dated 02.06.2022, also recorded that no reply to the show cause notice had been submitted, and fixed the effective date of cancellation as 12.07.2023. Allowing the petition, the Court (Subhash Vidyarthi, J.) set aside both orders, directed the Assistant Commissioner (printed as 'Lucknow Sector 2') to pass a fresh order taking into consideration the petitioner's reply dated 06.06.2022, and left Respondent No.3 at liberty to initiate fresh proceedings in accordance with law after affording adequate opportunity. Internal discrepancies in the judgment (cancellation order printed as dated 12.07.2022 in ¶7 but 12.07.2023 in ¶¶10 and 16; original authority 'Sector-1, Bahraich' versus redetermination authority 'Lucknow Sector 2') are reproduced as printed.

Neutral Citation No. - 2024:AHC-LKO:37063

Court No. - 19

Case :- WRIT TAX No. - 120 of 2024

Petitioner :- M/S Aravali Infra Developers,Bahraich Thru. Proprietor Farhan Shavez Respondent :- State Of U.P. Thru. Prin. Secy. Ministry Of Finance, Lko. And 2 Others Counsel for Petitioner :- Anurag Mishra,Amit Agarwal Counsel for Respondent :- C.S.C.

Hon'ble Subhash Vidyarthi,J.

Heard Sri Pranjal Shukla, the learned counsel for the petitioner and Sri Vikram Soni, the learned Additional Chief Standing Counsel appearing on behalf of the State.

By means of the instant writ petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of an order dated 12.07.2022 passed by the Assistant Commissioner, Sector-1, Bahraich cancelling the registration of the petitioner's proprietorship concerned M/s Aravali Infra Developers, Bahraich. The petitioner has also challenged the validity of an order dated 12.04.2024 passed by the Additional Commissioner, Grade-2 (Appeal) State Tax, Gonda dismissing the defective appeal filed by the petitioner against the aforesaid cancellation order dated 12.07.2022, only on the ground that the appeal had been filed belatedly.

The learned counsel for the petitioner has submitted that the cancellation order dated 12.07.2022 mentions that:-"this has reference to your reply dated 06.06.2022 in response to show cause notice dated 02.06.2022.

Whereas no reply to notice to show cause has been submitted;

The effective date of cancellation of your registration is 12.07.2023."

The submission of the learned counsel for the petitioner is that the aforesaid contents of the cancellation order indicate a total non application of mind by the authority concerned while cancelling the G.S.T registration of the petitioner as on the one hand the order states that it was being passed with reference to the petitioner's reply dated 06.06.2022 but at the same time order states that the petitioner had not submitted any reply to the show cause notice. The contents of the petitioner's reply

dated 06.06.2022 have also not been taken into consideration while passing of the impugned order.

Such an unreasoned order cannot be sustained in law as no judicial order can be passed without giving sufficient reasons for passing of the order.

The appeal filed against the aforesaid order has been dismissed on the ground of limitation only.

Bar of limitation may bar the remedy of appeal but it does not bar the petitioner's right to seek his constitutional remedy under Article 226 of the Constitution of India, particularly when the impugned order affects valuable rights of the petitioner and the same has been passed without assigning any reason.

Accordingly, the writ petition is allowed . The orders dated 12.07.2023 passed by the Assistant Commissioner, Sector-1, Bahraich and 12.04.2024 passed by the Additional Commissioner, Grade-2 (Appeal) State Tax, Gonda are hereby set aside and the learned Assistant Commissioner, Lucknow Sector 2, is directed to pass a fresh order after taking into consideration the submissions made by the petitioner in the reply dated 06.06.2022 given in response to the show cause notice dated 02.06.2022.

The Respondent No.3 shall be at liberty to initiate fresh proceedings, in accordance with law, after giving adequate opportunity to the petitioner to present his case and after taking consideration the pleas taken by the petitioner, if any.

Order Date :- 14.5.2024 akhilesh/-

Digitally signed by :- AKHILESHWAR KUMAR High Court of Judicature at Allahabad, Lucknow Bench