M/S Ajay Building Material v. State Of U.P. And 2 Others
Case note by CA Nikhil Gupta
Case overview
This Allahabad High Court decision concerns None. The retained release ledger records the outcome as Remanded / fresh adjudication and classifies the matter under Appeals & Limitation.
Facts and procedural background
Case :- WRIT TAX No. - 844 of 2022
Petitioner :- M/S Ajay Building Material Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Shubham Agrawal Counsel for Respondent :- C.S.C.
Present petition has been filed challenging the order dated 01.12.2020 whereby GST registration of the petitioner has been cancelled as well as the order dated 30.12.2021 whereby the appeal has been dismissed.
Contention of learned counsel for the petitioner is that the petitioner was served with a show-cause notice dated 20.11.2020 whereby it was alleged that taxpayer has not filed returns for a continuous period of six months. He argues that in the show-cause notice, no date and time was fixed for hearing. He argues that without fixing any date and time for hearing, an order came to be passed on 01.12.2020 cancelling the GST registration of the petitioner without assigning any reason whatsoever.
Issues before the Court
Learned counsel for the petitioner relies upon a judgment passed by this Court in the case of M/s Chandra Sain, v. U.O.I & Ors. (Writ Tax No.147 of 2022) decided on 22.09.2022 as well as M/S Precitech Engineeers v. State of U.P. & Ors. (Writ Tax No.1583 of 2022) decided on 14.03.2023 whereby the issue with regard to non-mentioning of date and place of hearing was also considered.
Court's analysis and findings
He further argues that against the order dated 01.12.2020 an appeal was preferred and alongwith the appeal, the petitioner had annexed the documents demonstrating that the allegations in the show-cause notice were incorrect. He further clarifies that the said proof with regard to filing of the returns was filed subsequent to the filing of the appeal. The appeal was heard by the appellant authority, however, going beyond the allegations levelled in the show-cause notice and going beyond the reasons for cancellation for registration, the appellate authority dismissed the appeal on the grounds which were alien to the show-cause notice.
Learned counsel for the petitioner relies upon a judgment passed by this Court in the case of M/s Chandra Sain, v. U.O.I & Ors. (Writ Tax No.147 of 2022) decided on 22.09.2022 as well as M/S Precitech Engineeers v. State of U.P. & Ors. (Writ Tax No.1583 of 2022) decided on 14.03.2023 whereby the issue with regard to non-mentioning of date and place of hearing was also considered.
Considering the said two judgments, I am of the firm view that the order dated 01.12.2020 clearly falls short of the requirement of Article 14 of the Constitution of India. The appellate order dated 30.12.2021 clearly exceeds the power conferred upon the
appellate authority as it decides the appeal on the issues which were neither a part of the show-cause notice nor was a consideration when the order dated 01.12.2020 was passed.
Decision and relief
The matter is remanded back to the authority concerned to pass a fresh order after giving an opportunity of hearing to the petitioner in accordance with law.
The writ petition is disposed off in above terms.
Order Date :- 27.3.2023 nishant
2023-03-27T16:11:53+0530 High Court of Judicature at Allahabad
Ratio and practical significance
The binding effect flows from the court's operative reasoning reproduced below, read in the context of the pleaded facts and statutory provisions. Users should not generalise the result beyond materially comparable facts.
- Map the operative reasoning to the exact GST provision and procedural stage.
- Confirm whether a later review, appeal, SLP or subsequent judgment affects reliance.
- Preserve the official case number, decision date and neutral citation in professional work.
Full judgment text
Case :- WRIT TAX No. - 844 of 2022
Petitioner :- M/S Ajay Building Material Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Shubham Agrawal Counsel for Respondent :- C.S.C.
Present petition has been filed challenging the order dated 01.12.2020 whereby GST registration of the petitioner has been cancelled as well as the order dated 30.12.2021 whereby the appeal has been dismissed.
Contention of learned counsel for the petitioner is that the petitioner was served with a show-cause notice dated 20.11.2020 whereby it was alleged that taxpayer has not filed returns for a continuous period of six months. He argues that in the show-cause notice, no date and time was fixed for hearing. He argues that without fixing any date and time for hearing, an order came to be passed on 01.12.2020 cancelling the GST registration of the petitioner without assigning any reason whatsoever.
He further argues that against the order dated 01.12.2020 an appeal was preferred and alongwith the appeal, the petitioner had annexed the documents demonstrating that the allegations in the show-cause notice were incorrect. He further clarifies that the said proof with regard to filing of the returns was filed subsequent to the filing of the appeal. The appeal was heard by the appellant authority, however, going beyond the allegations levelled in the show-cause notice and going beyond the reasons for cancellation for registration, the appellate authority dismissed the appeal on the grounds which were alien to the show-cause notice.
Learned counsel for the petitioner relies upon a judgment passed by this Court in the case of M/s Chandra Sain, v. U.O.I & Ors. (Writ Tax No.147 of 2022) decided on 22.09.2022 as well as M/S Precitech Engineeers v. State of U.P. & Ors. (Writ Tax No.1583 of 2022) decided on 14.03.2023 whereby the issue with regard to non-mentioning of date and place of hearing was also considered.
Considering the said two judgments, I am of the firm view that the order dated 01.12.2020 clearly falls short of the requirement of Article 14 of the Constitution of India. The appellate order dated 30.12.2021 clearly exceeds the power conferred upon the
appellate authority as it decides the appeal on the issues which were neither a part of the show-cause notice nor was a consideration when the order dated 01.12.2020 was passed.
In the light of the said, both the orders i.e. 01.12.2020 & 30.12.2021 are set aside.
The matter is remanded back to the authority concerned to pass a fresh order after giving an opportunity of hearing to the petitioner in accordance with law.
The writ petition is disposed off in above terms.
Order Date :- 27.3.2023 nishant
2023-03-27T16:11:53+0530 High Court of Judicature at Allahabad
Finin2min Q&A
What court decided this case?
Allahabad High Court
What was the case number?
WRIT TAX No. 844 of 2022
When was the decision delivered?
2023-03-27
Which GST provisions are identified in the case?
None
What was the recorded outcome?
Remanded / fresh adjudication
Is the complete judgment text available here?
Yes. This page includes a faithful local rendition of the full text recovered from the issuing court source.
Should this page substitute professional advice?
No. Verify the official citation and later history before professional reliance.
Who authored the Finin2min case note?
CA Nikhil Gupta.