HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT TAX NO.-1915 of 2025
M/S IMPLEX INFRASTRUCTURE
VERSUS
STATE OF U.P AND 3 OTHERS
Date of Judgment: OCTOBER 7, 2025
HEADNOTE-
In Writ Tax No. 1915 of 2025, the High Court of Judicature at Allahabad held that cancellation of GST registration passed through an ex-parte order for non-filing of returns was illegal as the show cause notice was defective and no proper opportunity of hearing was granted. The Court observed that such action violated the principles of natural justice and Articles 14 and 19(1)(g) of the Constitution. Although the appeal was dismissed on limitation, the doctrine of merger was held inapplicable, and the impugned orders were quashed with a direction to issue fresh notice and pass a reasoned order after hearing.
IMPORTANT PARAGRAPH-
2. The instant writ petition has been filed against the impugned order dated 31.03.2025 passed by the respondent no. 3 as well as the impugned order dated 16.05.2023 passed by the respondent no. 4.
6. Per contra, learned ACSC supports the impugned orders.
7. After hearing learned counsel for the parties, the Court has perused the records.
8. The records shows that the petitioner is engaged in the business of real estate. On perusal of the record, it shows that the show cause notice was given for failure of filing of returns for previous quarters. A copy of notice dated 12.04.2023 is annexed as Annexure No. 4 of this writ petition and on perusal of the same, it shows that neither name of the proper officer has been mentioned nor its description has been mentioned. Once the notice does not disclose that before which officer, the petitioner has to appear, the notice cannot be said to be proper in accordance with law. Further, the petitioner for the first time came to know about the cancellation in February 2025. Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is in violation of principles of natural justice. Further the petitioner was also not afforded any opportunity of being personally heard. Therefore, the impugned order cannot be sustained in the eyes of law.
9. The record shows that the quasi-judicial order which has an adverse effect on the right of the petitioner to run business as guaranteed under Article 19 of the Constitution of India, the same has been done without any application of mind which is neither the intent of the Act nor can it be held to be in compliance of the mandate of Article 14 of the Constitution of India.
10. Learned counsel for the petitioner further argues that his appeal has not been decided on merit though the same has been dismissed on the ground of latches, therefore, the doctrine of merger will have no application.
11. The impugned order which affect the right of the petitioner and has devoid of any reason, can be challenged before this Court as held by the Apex Court in the case of Whirlpool Corporation Vs. Registrar of Trade Marks, Mumbai and others, 1998 (8) SCC 1.
12. This Court in the case of M/s Surya Associates Vs. Union of India and others (Neutral Citation No. 2024: AHC:166791) has held as under:
Further, this Court in the case of Ashok Kumar Vishwakarma (supra) has held that if no reason has been assigned for cancelling the registration, such order cannot sustain despite appeal being dismissed on the ground of laches, and the doctrine of merger will have no application and set aside the orders impugned therein and remanded the matter for adjudicating the issue de novo.
13. The record shows that the impugned order has been passed without application of mind and same does not satisfy the test of Article 14 of the Constitution of India.
14. In view of the aforesaid facts and circumstances of the case as well as law laid down by this Court as referred herein above, the impugned orders cannot be sustained in the eyes of law and same are hereby quashed.
15. The Writ Petition is allowed.
