Allahabad High Court Quashes GST Registration Cancellation for Lack of Hearing

The Allahabad High Court set aside the GST registration cancellation of a petitioner, as he did not have a proper opportunity for a hearing before the cancellation order was passed.

The petitioner S.K. Tripathi’s registration was cancelled by the GST department under Section 29(2)(d) of the GST Act. He filed an appeal before the lower authorities; however, the same was rejected for being time-barred. Therefore, the petitioner approached the Allahabad High Court.

The petitioner argued that he did not get the hearing opportunity before passing the order. He also contended that the discretionary powers under Section 29(2) cannot be exercised mechanically.

The Court cited the case of M/s Chandra Sain Vs. Union of India and Ors. and observed that the cancellation order did not specify reasons for the registration cancellation. This clearly showed that the order was passed without the application of the mind. Such an act violates Article 14 of the Constitution of India, and therefore, the court quashed both the cancellation order and the appellate order.

The Court directed the petitioner to file a reply to the show-cause notice within three weeks, after which the authorities must pass a fresh order while providing a proper opportunity for hearing.