GST Dept. Issued Registration Cancellation Order Without Stating Reason: Allahabad HC Quashes Order

The Allahabad High Court has quashed a GST registration cancellation order issued by the GST department without stating any reason. The court observed that the order was passed in violation of the principles of natural justice, as the taxpayer was not given an opportunity to be heard. The case involved a taxpayer whose GST registration was cancelled by the department without providing any specific reason or justification. The taxpayer challenged the order in the Allahabad High Court, arguing that the cancellation was arbitrary and violated their right to a fair hearing. The court agreed with the taxpayer’s contention and held that the department’s action was illegal and unjustified. The court directed the department to restore the taxpayer’s GST registration and provide a proper opportunity for the taxpayer to present their case. This ruling underscores the importance of adhering to the principles of natural justice in administrative proceedings and ensures that taxpayers are given a fair chance to defend themselves.