Mahendra Pd. Singh And Bros vs The Union Of India
2023 Latest Caselaw 2370 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                     Civil Writ Jurisdiction Case No.3566 of 2023
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1. Mahendra Pd. Singh and Bros a Partnership firm registered Under Indian partnership Act. 1932 having its registeted Office at Dalluchack, Post office and Police Station-Khaugaul through its Partner Rakesh Kumar Sinha Son of Late Mahendra Prasad Singh, Mahendra Pd. Singh, Resident of Dalluchak, Khagaul, Post Office and Police Station-Khagaul, District-Patna.

2. Rakesh Kumar Sinha Son of Late Mahendra Prasad Singh Resident of Dalluchak, Khagaul, Post Office and Police Station-Khagaul, District-Patna.

... ... Petitioner/s Versus

1. The Union of India through revenue Secretary, Ministry of Finance, New Delhi.

2. The Commissioner of Goods and Service Tax and Central Excise, Patna, Bihar.

3. The Joint Commissioner of Custom, CGST and Cx, Patna Central Circle, Annexe Building, Bir Chand Patel Path, Patna.

4. The Superintendent, CGST, Danapur range, Patna, Bihar.

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr.Krishna Mohan Mishra For the Respondent/s : Mr.Additional Solicitor General ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 12-05-2023

The petitioner is aggrieved with the cancellation of

registration by Annexure- P/1, order dated 23.02.2021. 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 Patna High Court CWJC No.3566 of 2023 dt.12-05-2023

Annexure- P/1, 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.

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 Patna High Court CWJC No.3566 of 2023 dt.12-05-2023

laboring under the belief 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 dated 23.02.2021 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 Patna High Court CWJC No.3566 of 2023 dt.12-05-2023

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)

Raj kishore/ Shyam Bihari/-

AFR/NAFR
CAV DATE
Uploading Date          16.05.2023.
Transmission Date