Madras High Court Quashes Non-Speaking Order Rejecting The GST Registration Application

The petitioner had made an application seeking registration in accordance with Section 22 read with Section 25 of the CGST Act and Rule 8 of the CGST Rules. The registration sought was in respect of a rice mandi. The receipt of the application was duly acknowledged and physical verification (pv) was also duly undertaken.

A notice came to be issued by the respondent officer seeking a clarification with respect to the application for registration. The clarification sought was that the application did not enclose the details of the principal place of business of the petitioner.

The petitioner duly responded, uploading a copy of the rental or lease deed duly registered in the office of the Sub-Registrar, Krishnagiri, as proof of principal place of business. The order has, however, come to be passed rejecting the application by way of a monosyllabic order simply stating "rejected" without assigning any reasons or explanation for the rejection thereof.

The petitioner assails an order rejecting his application for registration under the provisions of the Central Goods and Service Tax Act, 2017. The main ground upon which the order is assailed is that it is cryptic and entirely non-speaking.

The court held that if the assessing authority is inclined to reject the application, which he is entitled to, he must assign reasons for such objection and adhere to proper procedure, including due process.

Case Title: B.C. Mohankumar Versus Superintendent of Central Goods & Service Tax

Case No: W.P.No.13272 of 2022 and WMP.Nos.12569 & 12571 of 2022

Citation: 2022 LiveLaw (Mad) 305

Dated: 16.06.2022

Counsel For Appellant: Advocate Adithya Reddy

Counsel For Respondent: Senior Standing Counsel Prakash

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