GST Registration cancellation order set aside due to lack of reasoning

Last updated: 18 January 2023

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Quick Summary

The Patna High Court has overturned an order cancelling a taxpayer's GST registration. The court found the cancellation order to be a "non-speaking order" because it failed to provide any reasons for the cancellation and did not consider the taxpayer's reply to a show cause notice. This lack of reasoning was deemed a violation of natural justice principles. Consequently, the court ordered the restoration of the taxpayer's GST registration.

Court :
Patna High Court

Brief :
The Hon'ble Patna High Court in the matter of Manoj Kumar Sah v. The State of Bihar through Commissioner of State GST &Anr. [Civil Writ Jurisdiction Case No.18307 of 2022 dated January 10, 2023] set aside the order of cancellation of the Goods and Service Tax ("GST") Registration of the assessee and held that the cancellation of the GST Registration through a non-speaking order without mentioning the grounds for such cancellation is cryptic in nature and violates the principles of natural justice.

Citation :
Civil Writ Jurisdiction Case No.18307 of 2022 dated January 10, 2023

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