M/S Ambey Refrigerator v. The State Of Bihar

IN THE HIGH COURT OF JUDICATURE AT PATNA

Civil Writ Jurisdiction Case No.6292 of 2023 ====================================================== M/S Ambey Refrigerator Near Dhiman Engineering, Kankarbagh Patna, Patna, Bihar- 800020 a proprietorship firm through its proprietor Shri Ranjit Kumar, aged about 40 years, Gender- Male, S/o- Late Mumkhdev Ray, Business office- Near Dhiman Engineering, Kankarbagh, Patna, Patna, Bihar800020, Town and District-Patna having GSTIN- 10AZPPK8825P1ZQ. ... ... Petitioner/s

Versus

1.

The State of Bihar through the Principal Secretary, Bihar Sales Tax (Goods and Services) Department, Govt. of Bihar, Patna 2.

The Additional Commissioner of State Tax (Appeal), Patna West Division, Patna, District- Patna 3.

The Joint Commissioner of State Tax Patna South Circle, Patna having its Office situated at Anta Ghat, Gandhi Maidan, Patna, District- Patna ... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s :

Mr.Gopal Prasad Singh, Advocate For the Respondent/s :

Mr.Vikash Kumar, SC 11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 01-05-2023 The petitioner is aggrieved with the cancellation of registration by Annexure-3, order dated 18.09.2022. An appeal was filed which was delayed, which also stood rejected. Insofar as the Bihar Goods and Services Tax Act is concerned, now there is no Tribunal constituted for the State.

2. In such circumstances, we have looked at the order at Annexure-3, especially since the learned counsel for the petitioner has argued that it is a non-speaking order. We see

2/4 from the order that there is no reason stated as to why the cancellation was ordered and not even the subject of the notice is referred to in the order.

3. It is the submission of the learned counsel for the State that the form GST REG-19 has been adopted by the Assessing Officer.

4. We extract form GST REG-19:-

5. As we see from the Bihar Goods and Services Taxes Rules, 2017, GST REG-19 has a specific column where reasons have to be assigned. However, the Assessing Officer seems to be laboring under the belief that when an assessee does not appear or an objection is not filed, no

3/4 reasons have to be assigned.

6. We cannot countenance the said order, especially when there is absolutely no reason stated regarding the cancellation of registration.

7. We also notice the judgment of another Hon'ble Division Bench of this Court passed in Manoj Kumar Sah versus The State of Bihar and Anr. in C.W.J.C. No. 18307 of 2022, wherein it has been stated so:- " It cannot be disputed that with the passing of the said order, petitioner is liable to both civil and penal consequences. To say the least, the authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done. Not only the order is nonspeaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences. "

8. The impugned order in the instant writ petition also suffers from the very same illegality which has been pointed out by the Division Bench. In such circumstances, we set aside the order dated 18.09.2022 at Annexure-3 and direct reconsideration of the issue.

9. In this context, we also notice that notification No. 3 of 2023 has been brought in by the Central Government on the recommendations of the G.S.T. Council

4/4 wherein if the cancellation has been effected for failure to file returns under clause (b) or clause (c) of Sub-section (2) of Section 29, there is a further period allowed up to 30.06.2023, wherein the registered person can apply for revocation of cancellation. This is also subject to the condition that the return should be filed up to the effective date of cancellation of registration and the payment of tax, interest, penalty and late fee in respect of such returns have also been made. The assessee would also be entitled to avail of the said remedy if the cancellation has been effected under clause (b) or clause (c) of Sub-section (2) of Section 29.

10. The writ petition stands allowed.

(K. Vinod Chandran, CJ) ( Madhuresh Prasad, J) Sujit/- AFR/NAFR NAFR CAV DATE Uploading Date 02.05.2023 Transmission Date