Allowed

M/s Mohammad Mumtaj Gouse v. The Union of India

Patna HC24 Apr 2023CWJC/2085/2023

Case brief

AI extract

What is this about?

A proprietorship firm's GST registration cancellation order was challenged as non-speaking. The court found no reasons stated in the cancellation order, held it violated natural justice, set it aside and directed reconsideration, noting the assessee could also seek revocation under Notification No. 3 of 2023.

What did the court decide?

Impugned cancellation order set aside; authority directed to reconsider the issue; liberty noted to apply for revocation under Notification No. 3 of 2023.

M/s Mohammad Mumtaj Gouse Vs The Union of India — GST and Indirect Tax | Patna HC (2023)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.2085 of 2023

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M/s Mohammad Mumtaj Gouse (A Sole Proprietorship Firm), Having its Registered Office at - 00, Parliya Hat, Kadwa, P.S.- Kadwa, District- Katihar through its sole proprietor Mohammad Mutaj Gouse, aged about 34 years, S/o Md. Abrar Parweze.

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... ... Petitioner/s

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Versus

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The Union of India through the Secretary, Ministry of Finance, Department of Revenue, having its office at Room No. 46, North Block, P.O. and P.S. North Block, New Delhi- 110001.

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Assistant Commissioner, CGST and CX, Purnea Division, Purnea.

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Superintendent, CGST and CX, Katihar Circle, Katihar.

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... ... Respondent/s

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====================================================== Appearance : For the Petitioner/s : Mr.Anurag Saurav, Advocate Mr. Abhinav Alok, Advocate Mr. Priyajeet Pandey, Advocate For the Respondent/s : Dr. K.N. Singh, Additional Solicitor General ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

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Date : 24-04-2023

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The petitioner is aggrieved with the cancellation of registration by Annexure-2 order dated 20.04.2022.

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We have looked at the order at Annexure-2, especially since the learned counsel for the petitioner has argued that it is a non-speaking order. We see from the order that there is no reason stated as to why the cancellation was ordered and not even the subject of the notice is referred to in the order.

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It is the submission of the learned counsel for the

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Patna High Court CWJC No.2085 of 2023 dt.24-04-2023 2/4

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State that the form GST REG-19 has been adopted by the Assessing Officer.

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We extract form GST REG-19:-

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As we see from the Bihar Goods and Services Taxes Rules, 2017, GST REG-19 has a specific column where reasons have to be assigned. However, the Assessing Officer seems to be laboring under the belief that when an assessee does not appear or an objection is not filed, no reasons have to be assigned.

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We cannot countenance the said order, especially when there is absolutely no reason stated regarding the cancellation

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Patna High Court CWJC No.2085 of 2023 dt.24-04-2023 3/4

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of registration.

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We also notice the judgment of another Hon'ble Division Bench of this Court passed in Manoj Kumar Sah versus The State of Bihar and Anr. in C.W.J.C. No. 18307 of 2022 wherein it has been stated so:-

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" It cannot be disputed that with the passing of the said order, petitioner is liable to both civil and penal consequences. To say the least, the authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done. Not only the order is nonspeaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences. "

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The impugned order in the instant writ petition also

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suffers from the very same illegality which has been pointed out by the Division Bench. In such circumstances, we set aside the order at Annexure-2 and direct reconsideration of the issue.

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In this context, we also notice that notification No. 3 of 2023 has been brought in by the Central Government on the recommendations of the G.S.T. Council wherein if the cancellation has been effected for failure to file returns under clause (b) or clause (c) of Sub-section (2) of Section 29, there is a further period allowed up to 30.06.2023, wherein the

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Patna High Court CWJC No.2085 of 2023 dt.24-04-2023 4/4

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registered person can apply for revocation of cancellation. This is also subject to the condition that the return should be filed up to the effective date of cancellation of registration and the payment of tax, interest, penalty and late fee in respect of such returns have also been made. The assessee would also be entitled to avail of the said remedy if the cancellation has been effected under clause (b) or clause (c) of Sub-section (2) of Section 29.

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The writ petition stands allowed.

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(K. Vinod Chandran, CJ)

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(Madhuresh Prasad, J)

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P.K.P./Anushka

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AFR/NAFR CAV DATE Uploading Date 27.04.2023 Transmission Date

M/s Mohammad Mumtaj Gouse v. The Union of India

Case brief

What is this about?

What did the court decide?

M/s Mohammad Mumtaj Gouse v. The Union of India

Case brief

What is this about?

What did the court decide?

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