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Can GST Registration be cancelled by a Non-Speaking Cryptic Order? Patna High Court comes as a Saviour!!
Facts and Timelines:
21-Aug-2019: Show Cause Notice was issued as Assessee has not filed his Returns for more than 6 months.
31-Aug-2019: Assessee filed reply.
Reply filled but returns were not filed.
12-Sep-2019: Order U/s 29 was passed cancelling the Registration wef 12.09.2019 but the order was Non-Speaking and cryptic.
Aggrieved with such Order, Assessee approached High Court.
Patna High Court held:
šš» Not only the order is non-speaking, but cryptic in nature and the reason of GST registration cancellation is not decipherable therefrom.
šš»Principles of natural justice stand violated, hence directed to restore Petitionerās registration.
šš»The authority havenāt referred to the contents of the show cause and the response thereto and with the passing of such order petitioner is liable to both civil and penal consequences.
Title: Manoj Kumar Sah vs The State of Bihar
Court: Patna High Court
Abhishek Raja Ram
Citation: Civil Writ Jurisdiction Case No.18307 of 2022
Dated: 10-Jan-2023
In my View
Officers should be careful while cancelling registration or passing any adverse order that the order is Speaking Order. Unless that is speaking order and it has discussion on reply submitted
and conclusion why the Reply submitted is not acceptable such order could be considered as cryptic order and liable for being quashed.
Much of GST Litigation could be avoided by passing speaking order with specific charges and conclusions thereon.
Thanks