Patna High Court
M/S Umesh Bricks vs The State Of Bihar on 9 May, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.6460 of 2023
======================================================
M/s Umesh Bricks through its Proprietor Umesh Mahto, Male, aged about 51
Years, Son of Shiv Narayan Mahto, Resident of Madapur Chhapra,
Samastipur Pusa, District-Samastipur, Bihar-848125.
... ... Petitioner/s
Versus
1. The State of Bihar through the Commissioner of Commerical State Taxes,
New Secretariat, Patna.
2. The Joint Commissioner, State Taxes, Samastipur, Bihar.
3. The Additional Commissioner, State Taxes (Appeal), Darbhanga Circle,
Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Archana Sinha @ Archana Shahi
For the Respondent/s : Mr.P.K. Shahi (Ag)
======================================================
CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE MADHURESH PRASAD
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 09-05-2023
The petitioner is aggrieved with the cancellation of
registration by order dated 26.07.2021 (Annexure 2). 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
from the order that there is no reason stated as to why the
Patna High Court CWJC No.6460 of 2023 dt.09-05-2023
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 that when an
assessee does not appear or an objection is not filed, no
reasons have to be assigned.
Patna High Court CWJC No.6460 of 2023 dt.09-05-2023
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 dated 26.07.2021 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 recommendations of the G.S.T. Council
wherein if the cancellation has been effected for failure to
Patna High Court CWJC No.6460 of 2023 dt.09-05-2023
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)
M.E.H/uttam/-
AFR/NAFR NAFR
CAV DATE N/A
Uploading Date
Transmission Date N/A
