Facts of the Case

The petitioner, Md. Nihal Akhtar, Madhubani, Bihar, had his GST registration cancelled by order dated 22.04.2022 (Annexure-2), passed in Form GST REG-19. A delayed appeal against the cancellation also stood rejected, and the GST Appellate Tribunal for the State of Bihar remained unconstituted. The petitioner approached the Patna High Court contending the cancellation order was a non-speaking order.

Issues Involved

  1. Whether the GST registration cancellation order in Form GST REG-19, silent on reasons, could be sustained.
  2. Whether the CBIC's amnesty Notification No.3 of 2023 provided an alternative avenue for revocation.

Petitioner's Arguments

  • The petitioner argued the cancellation order disclosed no reasons for the cancellation and did not even refer to the subject matter of the underlying notice.

Respondent's Arguments

  • The Department's counsel submitted that the prescribed Form GST REG-19 had been adopted by the Assessing Officer for passing the cancellation order.

Court Order / Findings

  • Examining Form GST REG-19 under the Bihar GST Rules, 2017, the Court reiterated that it contains a specific column for reasons, and that the Assessing Officer had erroneously proceeded on the belief that non-appearance or non-filing of an objection dispensed with the need to record reasons.
  • Following Manoj Kumar Sah v. State of Bihar (C.W.J.C. No.18307 of 2022), the Court held the order suffered the same illegality — non-speaking, cryptic, with the cancellation reason not decipherable — violating natural justice given its civil and penal consequences.
  • The cancellation order dated 22.04.2022 was set aside and the issue remanded for reconsideration.
  • The Court again flagged Notification No.3 of 2023, permitting registered persons whose registration was cancelled under Section 29(2)(b)/(c) to seek revocation up to 30.06.2023 on filing due returns and paying tax, interest, penalty and late fee.
  • The writ petition was allowed.

Important Clarification

  • A Form GST REG-19 cancellation order must record actual reasons; treating non-appearance or silence on the assessee's part as excusing the requirement to state reasons is legally untenable.
  • CBIC Notification No.3 of 2023 offered an independent revocation window (till 30.06.2023) for registrations cancelled under Section 29(2)(b)/(c), on clearing dues.

Sections Involved

  • Section 29(2)(b)/(c), Central Goods and Services Tax Act, 2017 – cancellation of registration for continuous default in filing returns.
  • Section 30, Central Goods and Services Tax Act, 2017 – revocation of cancellation, the subject of the amnesty notification.

Decision – In Favour of

The decision is in favour of the Assessee — the non-speaking cancellation order was set aside and the matter remanded for a reasoned decision.

Case Details

Court: High Court of Judicature at Patna
Case No.: CWJC No.4241 of 2023
Coram: Chief Justice K. Vinod Chandran and Justice Madhuresh Prasad
Date of Order: 25.04.2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.