Facts of the Case

The petitioner, Maa Construction, was aggrieved by cancellation of its GST registration by order dated 01.04.2022, followed by rejection of its delayed appeal. As with the connected Umesh Bricks matter decided by the same Bench, no GST Appellate Tribunal has been constituted for Bihar, and the cancellation order (Form GST REG-19) stated no reasons for the cancellation.

Issues Involved

  1. Whether a GST registration cancellation order issued in Form GST REG-19 without stating any reasons for the cancellation could be sustained.

Petitioner's Arguments

  • The petitioner's counsel argued that the order was non-speaking, giving no reasons and not even referring to the subject-matter of the underlying notice.

Respondent's Arguments

  • The State's counsel submitted that the Assessing Officer had adopted the prescribed Form GST REG-19 in passing the order.

Court Order / Findings

  • The Court reiterated its reasoning from Manoj Kumar Sah v. State of Bihar (C.W.J.C. No.18307 of 2022) that a cancellation order entailing civil and penal consequences must at least refer to the show-cause notice and the response thereto, and cannot be cryptic or non-speaking.
  • Finding that the cancellation order dated 01.04.2022 gave absolutely no reason for cancellation, the Court held it could not be countenanced and set it aside, directing reconsideration of the issue.
  • The Court also noted the revocation window under Central Government Notification No.3 of 2023, permitting registered persons cancelled under Section 29(2)(b)/(c) to apply for revocation up to 30.06.2023, subject to filing pending returns and paying dues.

Important Clarification

  • This decision reaffirms, in a separate case decided by the same Patna High Court Bench within days of a similarly-worded ruling, that GST registration cancellation orders passed in Form GST REG-19 without recording reasons are void for want of a speaking order — the requirement is not diluted merely because the Assessing Officer used the prescribed form.
  • The consistency of this reasoning across multiple, differently-numbered cancellation matters before the same Bench signals a settled position rather than a one-off ruling, useful for any assessee in Bihar facing a similarly bare cancellation order.

Sections Involved

  • Form GST REG-19 under the Bihar GST Rules, 2017 - the form for orders cancelling registration, requiring reasons to be recorded.
  • Section 29(2) of the CGST/Bihar GST Act, 2017 - grounds for registration cancellation.

Decision – In Favour of

The writ petition was allowed in favour of the Assessee; the cancellation order was set aside for want of reasons and the matter remitted for reconsideration.

Case Details

High Court of Judicature at Patna, Civil Writ Jurisdiction Case No.6300 of 2023; Coram: Hon'ble The Chief Justice K. Vinod Chandran and Hon'ble Mr. Justice Madhuresh Prasad; decided on 29 April 2023.

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