Allowed

M/s Jyoti Electricals v. The Union of India

Patna HC25 Apr 2023CWJC/3070/2023

Case brief

AI extract

What is this about?

The High Court of Patna quashed an order cancelling the petitioner's GST registration dated 11.07.2022 because it was non-speaking and devoid of reasons, violating principles of natural justice. The Court directed reconsideration of the issue while noting recent central government notifications allowing a remedy for cancellation under specific clauses of Section 29.

What did the court decide?

The impugned order dated 11.07.2022 was set aside, and the matter was remanded to the assessing authority for reconsideration.

M/s Jyoti Electricals Vs The Union of India — GST and Indirect Tax | Patna HC (2023)

¶1

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3070 of 2023

¶2

======================================================

¶3

M/s Jyoti Electricals (A Sole Proprietorship Firm), Having its Registered Office at Adarsh Nagar, 70 Feet Sipara, P.S.- Beur, P.O.- Anisabad, DistrictPatna through its sole proprietor Aditya (M) Age- 44 years, S/o Vijay Kumar Tivari, Near Gandhi Maidan, Vill- 111C Ashiana Galaxy P.S. Gandhi Maidan, District- Patna.

¶4

... ... Petitioner/s

¶5

Versus

¶6

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.

¶7

¶8

¶9

Joint Commissioner of CGST, Patna, Central Revenue Building, Patna.

¶10

Assistant Commissioner of CGST, Central Revenue Building, Patna.

¶11

Additional Commissioner/ Superintendent, Patna South, Danapur Division, Patna.

¶12

... ... Respondent/s

¶13

====================================================== Appearance : For the Petitioner/s : Mr. Uday Prasad Singh, Advocate For the Respondent/s : Mr. Dr. K.N. Singh, Advocate

¶14

======================================================

¶15

CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

¶16

Date : 25-04-2023

¶17

1. The petitioner is aggrieved with the cancellation of registration by Annexure- 2 order dated 11.07.2022. An appeal was filed which is pending before the appellate authority.

¶18

2. 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.

¶19

Patna High Court CWJC No.3070 of 2023 dt.25-04-2023 2/4

¶20

3. It is the submission of the learned counsel for the State that the form GST REG-19 has been adopted by the Assessing

¶21

Officer.

¶22

4. We extract form GST REG-19:-

¶23

5. 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.

¶24

6. We cannot countenance the said order, especially when

¶25

Patna High Court CWJC No.3070 of 2023 dt.25-04-2023 3/4

¶26

there is absolutely no reason stated regarding the cancellation of registration.

¶27

7. 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:-

¶28

" 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. "

¶29

8. The impugned order in the instant writ petition also 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.

¶30

9. 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

¶31

Patna High Court CWJC No.3070 of 2023 dt.25-04-2023 4/4

¶32

a further period allowed up to 30.06.2023, wherein the registered person can apply for invocation 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.

¶33

10 . The writ petition stands allowed.

¶34

(K. Vinod Chandran, CJ)

¶35

(Madhuresh Prasad, J)

¶36

rajkishore/- AFR/NAFR CAV DATE Uploading Date 28.04.2023. Transmission Date

M/s Jyoti Electricals v. The Union of India

Case brief

What is this about?

What did the court decide?

M/s Jyoti Electricals v. The Union of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

M/s Mohammad Mumtaj Gouse Vs The Union of India

Deepak Kumar Mahto Vs The State of Bihar

Sai Enterprises a proprietary concern Vs The State of Bihar

Md. Ishakh Vs The Union of India

Saroj Devi @ Saroj Yadav Vs The State of Bihar

Ashram Foundation Vs The State of Bihar