Facts of the Case

The petitioner, M/S Bhoomi Tour And Travels, challenged an order dated 29.03.2024 cancelling its GST registration under Section 29(2)(d) of the GST Act, along with an appellate order dated 25.09.2025 dismissing its appeal as barred by limitation. The petitioner's case was that no opportunity of hearing was granted before cancellation, that the cancellation was ex-parte as he had no knowledge of the notice, and that no manual notice was issued. It was further argued that even though the appellate authority lacked power to condone the delay, the original cancellation order itself was non-speaking and passed without application of mind.

Issues Involved

  1. Whether the discretionary power to cancel GST registration under Section 29(2) can be exercised mechanically, without recording reasons and without affording an opportunity of hearing.
  2. Whether such a non-speaking cancellation order can be sustained merely because the statutory appeal against it was dismissed on limitation grounds.

Petitioner's Arguments

  • Section 29(2) confers a discretionary power that cannot be exercised mechanically; the cancellation order was ex-parte, as no manual notice was issued and the petitioner had no knowledge of the notice.
  • The order suffers from the vice of being non-reasoned, and reliance was placed on the coordinate-bench ruling in M/s Chandra Sain v. Union of India (Writ Tax No.147 of 2022), which had quashed a similarly unreasoned cancellation order as violative of Article 14.
  • Even though the appellate authority lacked power to condone delay, the underlying cancellation order – devoid of reasons – could independently be challenged before the High Court, since the appeal was not decided on merits and the doctrine of merger did not apply.

Respondent's Arguments

  • An opportunity was granted to the petitioner which was not availed; hence it cannot be said that the order was passed without affording any opportunity of hearing.

Court Order / Findings

  • Following Chandra Sain, the Court reiterated that a quasi-judicial order adversely affecting the fundamental right to carry on business under Article 19, if passed without application of mind or reasons, fails the test of Article 14 of the Constitution.
  • On perusal of the order dated 29.03.2024, the Court found no reason ascribed for the harsh action of cancelling the petitioner's registration.
  • Both the cancellation order dated 29.03.2024 and the appellate order dated 25.09.2025 were quashed and set aside.
  • The petitioner was directed to file a reply to the show cause notice within three weeks, with the adjudicating authority to pass a fresh, reasoned order after affording an opportunity of hearing and considering the petitioner's defence.

Important Clarification

  • A GST registration cancellation order that discloses no reasons is a quasi-judicial order violative of Article 14 of the Constitution and is liable to be quashed regardless of whether the statutory appeal against it was rightly dismissed on limitation, since the appellate dismissal (not being on merits) does not cure or merge with the defect in the original order.

Sections Involved

  • Section 29(2)(d), CGST/UPGST Act, 2017 – cancellation of registration on grounds prescribed thereunder.
  • Article 14 & Article 19, Constitution of India – requirement of reasoned, non-arbitrary quasi-judicial action affecting the right to carry on business.

Decision – In Favour of

Disposed of in favour of the Assessee; both the cancellation order and the appellate dismissal were quashed and set aside, with the matter remanded for a fresh, reasoned order after hearing.

Case Details

High Court of Judicature at Allahabad, Lucknow Bench; Writ Tax No. 1152 of 2025; Coram: Hon'ble Jaspreet Singh, J.; Order dated 28.10.2025.

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.