Allahabad HC slams GST authorities for cancelling registration without assigning reasons
GST
Dated:- 26-11-2025
PTI
Prayagraj (UP), Nov 26 (PTI) The Allahabad High Court has come down heavily on GST authorities for passing frequent orders for the cancellation of the GST registration of traders without assigning reasons.
The court has said that such action of the authorities amount to announcing an “economic death” of a business entity as the cancellation orders passed in such a casual manner inflict disproportionate hardship on traders and disrupt legitimate business activity.
The court has highlighted that depriving a dealer of this statutory lifeline, without assigning reasons or affording an adequate opportunity to rectify
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le opportunity in such matters, so that similar lapses are not repeated,” the bench said.
The petitioner had challenged the October 15 order. Prior to this, a show-cause notice was issued alleging wrongful availing and passing on of bogus input tax credit in violation of section 16 of the Goods and Services Tax (GST) Act.
The court took strong exception to the manner in which the officer had exercised powers under the GST regime.
In this backdrop, the court observed that merely stating that a reply is “not satisfactory” reveals only the conclusion of the authority and not the reasoning that led to that conclusion, thereby failing the minimum standard of a reasoned administrative order.
The court remarked that the officer had acted “care
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