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M/s Purna Trading Company v. State Of U.p. And 2 Others

M/s Purna Trading Company v. State Of U.p. And 2 Others

(High Court Of Judicature At Allahabad)

WRIT TAX No. - 924 of 2022 | 10-10-2023

Piyush Agrawal, J.

1. Heard Mr. Pranjal Shukla for the petitioner and Mr. Rishi Kumar, learned A.C.S.C. for respondents.

2. The instant Writ Tax is being entertained by this Court in view of the fact that G.S.T. Tribunal is not functional in the State of Uttar Pradesh pursuant to the Gazette notification of the Central Government bearing number CG-DL-E14092023-248743 dated 14.09.2023.

3. By means of present petition, the petitioner is assailing the order dated 20.11.2020 / 7.12.2020 and 21.1.2021 passed by respondent no. 3 and 5 respectively and the order dated 17.11.2021 passed by respondent no. 2.

4. Learned counsel for the petitioner submits that the petitioner is a proprietorship firm having G.S.T.I.N. No. 09CCBPS0675N1Z0, engaged in retail whole sale business and deposited all due tax liabilities within time without any default. He submits that on 9.11.2020, a survey was conducted on the business premises of the petitioner and thereafter notice under Section 29(2) of UPGST Act was issued against the petitioner asking him to appear on 27.11.2020; the petitioner moved an adjournment application but without considering the grounds taken by the petitioner, the G.S.T. registration of the petitioner has been cancelled by ex parte. He further submits that the petitioner has moved a revocation application on 4.12.2020 which was also rejected by order dated 21.1.2021. He further submits that feeling aggrieved to the said order the petitioner has filed an appeal which was also rejected by the impugned order dated 17.11.2021 without assigning any reason. He prays for allowing the present petition.

5. In support of his submissions, learned counsel for the petitioner has placed reliance the judgements of this Court in Writ Tax No. 991 of 2021 (M/s Shyam Sundar Sita Ram Vs. State of UP and others) decided on 20.3.2023 and Writ Tax No. 319 of 2022 (M/s Gaurav Trading Company Vs. State of U.P. and others) decided on 6.12.2022.

6. Per contra, learned A.C.S.C. supports the impugned order and submits that in pursuance of the notice, neither any reply nor any material was submitted, therefore, registration was cancelled. The revocation application has also rightly been rejected. He further submits that before the appellate authority, time was granted to the petitioner to appear but the petitioner chose not to appear on four dates. He further submits that as per Section 107 (9) of the Act provides for grant of three adjournments only and as the petitioner had not appeared on four occasions, therefore, ex parte order has rightly been passed. He prays for dismissal of the present petition.

7. After hearing learned counsel for the parties, the Court has perused the records.

8. Admittedly, the order of cancellation has been passed without assigning any reason and revocation application has also been rejected without assigning any cogent reason and thereafter appeal has also been dismissed by the impugned order. The GST registration can only be cancelled as per Section 29 of UP GST Act.

9. From the perusal of the impugned order, it transpires that the same has been passed without recording any cogent reason for cancelling the GST registration of the petitioner and appellate authority has also dismissed the appeal filed by the petitioner summarily without assigning any reason.

10. Reason is the heart beat of every conclusion. In the absence of reasons the order becomes lifeless. Non recording of reasons renders the order to be violative of principles of natural justice. Reasons ensures transparency and fairness in decision making. It enables litigant to know reasons for acceptance or rejection of his prayer. It is statutory requirement of natural justice. Reasons are really linchpin to administration of justice. It is link between the mind of the decision taker and the controversy in question. Thus failure to give reasons amounts to denial of justice.

11. Today, this Court in Writ Tax No. 1476 of 2022 after considering various judgements of Apex Court has held as under :-

"'12. Providing of reasons in orders is of essence in judicial proceedings. Every litigant who approaches the Court with a prayer is entitled to know the reasons for acceptance or rejection of such request. Either of the parties to the lis has a right of appeal and, therefore, it is essential for them to know the considered opinion of the Court to make the remedy of appeal meaningful.

13. It is the reasoning which ultimately culminates into final decision which may be subject to examination of the appellate or other higher Courts. It is not only desirable but, in view of the consistent position of law, mandatory for the Court or Authority to pass orders while recording reasons in support thereof, however, brief they may be. It is a settled canon of legal jurisprudence that the Courts/Authorities are vested with discretionary powers but such powers are to be exercised judiciously, equitably and in consonance with the settled principles of law. Whether or not, such judicial discretion has been exercised in accordance with the accepted norms, can only be reflected by the reasons recorded in the order impugned before the higher Court. Often it is said that absence of reasoning may ipso facto indicate whimsical exercise of judicial discretion."

12. In view of above, the impugned order cannot be sustained in the eyes of law. However, the record reveals that petitioner has neither submitted reply in pursuance of notice nor appeared before the respondent authority in spite of various dates fixed before the first appellate authority, therefore, some cost is liable to be imposed upon the petitioner.

13. In the results, the writ petition is allowed and impugned orders dated 20.11.2020 / 7.12.2020, 21.1.2021 and 17.11.2021 are set aside subject to cost of Rs. 20,000/- (twenty thousand), which shall be deposited by the petitioner before the first appellate authority within a period of two weeks along with certified copy of this order. The matter is remitted back to the the first appellate authority who shall pass a fresh reasoned and speaking order, expeditiously, preferably within a period of two months from the date of production of a certified copy of this order, after affording reasonable opportunities of hearing to the parties concerned.

Advocate List

  • Pranjal Shukla

  • C.S.C.

Bench
  • HON'BLE MR. JUSTICE PIYUSH AGRAWAL
Eq Citations
  • 2023/AHC/194652
  • (2023) 100 GST 229 (All)
  • 2023 [78] G.S.T.L. 376
  • LQ/AllHC/2023/8097
Head Note

A. Goods and Services Tax Act, 2017 — U.P. Goods and Services Tax Act, 2017 (2 of 2018) — Ss. 29, 107(9) & 107(10) — Cancellation of GST registration — Non-recording of reasons — Imposition of cost — Proprietorship firm having G.S.T.I.N. No. 09CCBPS0675N1Z0, engaged in retail whole sale business and deposited all due tax liabilities within time without any default — Notice under S. 29(2) of U.P. GST Act issued against petitioner asking him to appear on 27.11.2020 — Petitioner moved adjournment application but without considering grounds taken by petitioner, G.S.T. registration of petitioner cancelled by ex parte — Revocation application also rejected by order dt. 21.1.2021 — Appeal filed by petitioner also rejected by impugned order dt. 17.11.2021 without assigning any reason — Held, order of cancellation has been passed without assigning any reason and revocation application has also been rejected without assigning any cogent reason and thereafter appeal has also been dismissed by impugned order — GST registration can only be cancelled as per S. 29 of U.P. GST Act — Non-recording of reasons renders the order to be violative of principles of natural justice — Matter remitted back to first appellate authority to pass a fresh reasoned and speaking order, expeditiously, preferably within a period of two months from the date of production of a certified copy of this order, after affording reasonable opportunities of hearing to the parties concerned — Constitution of India — Art. 14 — Natural Justice — Audi alteram partem — Reasons to be recorded — Reason is the heart beat of every conclusion — In the absence of reasons the order becomes lifeless — Non recording of reasons renders the order to be violative of principles of natural justice — Reasons ensures transparency and fairness in decision making — It enables litigant to know reasons for acceptance or rejection of his prayer — It is statutory requirement of natural justice — Reasons are really linchpin to administration of justice — It is link between the mind of the decision taker and the controversy in question — Thus failure to give reasons amounts to denial of justice — Practice and Procedure — Natural Justice