Patna High Court
M/S Shambhu Traders vs The State Of Bihar on 2 May, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4753 of 2023
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M/s Shambhu Traders, Registered Office Situated at Lohia Chowk,
Maheshkhunt, District-Khagaria, State-Bihar, PIN Code-801503, through its
Proprietor, Santosh Kumar Son of Shambhu Keshri, aged about 27 Years,
Gender-Male, Resident of Ward no.11, Lohia Chouk, Mahesh Khunt, District-
Khagaria, State-Patna, PIN Code-851213.
... ... Petitioner/s
Versus
1. The State of Bihar through its Secretary Finance, Government of Bihar.
2. Additional Commissioner of State Tax, Purnea.
3. Deputy Commissioner of State Tax, Khagaria.
... ... Respondent/s
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Appearance :
For the Petitioner/s :
For the Respondent/s : Mr.Vivek Prasad (GP-7)
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CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE MADHURESH PRASAD
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 02-05-2023
1. The petitioner is aggrieved with the cancellation of
registration by Annexure-2 order dated 09.05.2022. An appeal
was filed which was delayed, which also stood rejected. Insofar
as the Bihar Goods and Services Tax Act is concerned, now
there is no Tribunal constituted for the State.
2. In such circumstances, 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
Patna High Court CWJC No.4753 of 2023 dt.02-05-2023
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.
3. It is the submission of the learned counsel for the
State that the form GST REG-19 has been adopted by the
Assessing Officer.
4. We extract form GST REG-19:-
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
Patna High Court CWJC No.4753 of 2023 dt.02-05-2023
that when an assessee does not appear or an objection is
not filed, no reasons have to be assigned.
6. We cannot countenance the said order, especially
when there is absolutely no reason stated regarding the
cancellation of registration.
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:-
" 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 non-
speaking, 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. "
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.
9. In this context, we also notice that notification No.
3 of 2023 has been brought in by the Central Government on the
Patna High Court CWJC No.4753 of 2023 dt.02-05-2023
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
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.
10. The writ petition stands allowed.
(K. Vinod Chandran, CJ)
(Madhuresh Prasad, J)
P.K.P./Anushka
AFR/NAFR
CAV DATE
Uploading Date 03.05.2023
Transmission Date
