Facts of the Case

The petitioner, M/S Sunita Singh Construction, through its proprietor Suneeta, challenged an order dated 07.02.2023 cancelling its GST registration under Section 29(2)(d) of the GST Act, along with an appellate order dated 18.09.2025 dismissing the appeal as beyond limitation. The petitioner contended that no opportunity of hearing was granted before the ex-parte cancellation and that the order itself was devoid of any reasoning.

Issues Involved

  1. Whether an ex-parte, non-speaking registration-cancellation order, passed without application of mind, can be sustained under Section 29(2).
  2. Whether the appellate authority's inability to condone delay bars the High Court from examining the validity of the underlying cancellation order in writ jurisdiction.

Petitioner's Arguments

  • No opportunity of hearing was granted prior to passing the order, and the power under Section 29(2) being discretionary cannot be exercised mechanically.
  • Even though the appellate authority lacks power to condone the delay, the original cancellation order itself was patently ex-parte, non-reasoned, and suffered from non-application of mind, relying on M/s Chandra Sain vs. Union of India (Writ Tax No. 147 of 2022) and Om Prakash Mishra vs. State of U.P. (Writ Tax No.100 of 2022), and Whirlpool Corporation vs. Registrar of Trademarks, (1998) 8 SCC 1.

Respondent's Arguments

  • The Additional Chief Standing Counsel submitted that an opportunity was granted which the petitioner did not avail, so it could not be said that the order was passed without affording any opportunity of hearing.

Court Order / Findings

  • Following M/s Chandra Sain vs. Union of India, the Court reiterated that a quasi-judicial order adversely affecting the right to carry on business under Article 19 must disclose application of mind and reasons, since reasons are the heart and soul of any judicial or administrative order; the fact that the appeal was not decided on merits means the doctrine of merger does not shield the original order from scrutiny.
  • On perusal, the Court found no reason ascribed in the order dated 07.02.2023 for such a harsh action of cancellation, holding it did not satisfy the test of Article 14 of the Constitution.
  • Both the cancellation order dated 07.02.2023 and the appellate order dated 18.09.2025 were quashed and set aside; the petitioner was directed to file its reply to the show cause within three weeks, after which the adjudicating authority was to pass a fresh, reasoned order after hearing the parties.

Important Clarification

  • A GST registration-cancellation order must disclose application of mind and reasons; a bare, unreasoned cancellation fails the test of Article 14 regardless of whether a hearing opportunity was technically offered.
  • Where the statutory appeal against such an order is dismissed only on limitation grounds (not on merits), the doctrine of merger does not attach, and the High Court can independently examine and quash the unreasoned original order in writ jurisdiction.

Sections Involved

  • Section 29(2)(d), CGST Act, 2017 — cancellation of registration on grounds including contravention of Act/Rules.
  • Article 14 and Article 19, Constitution of India — non-arbitrariness and right to carry on business, invoked to test the cancellation order.

Decision – In Favour of

Assessee. Both the cancellation and appellate orders were quashed, with the matter remanded for a reasoned order after hearing.

Case Details

Court: High Court of Judicature at Allahabad, Lucknow Bench
Case No.: Writ Tax No. 1183 of 2025
Coram: Hon'ble Jaspreet Singh, J.
Date of Order: 28.10.2025

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