Judicial Corner: Quasi-judicial power cannot be exercised under dictation cancellation order set aside (12.03.2026)

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Quasi-judicial power cannot be exercised under dictation cancellation order set aside { Ankit Choudhary vs. Union of India [2026] 184 taxmann.com 122 (Gauhati)}

 

Facts

  • The GST registration of the petitioner was cancelled by the proper officer alleging wrongful availment of ITC under Section 16 of the GST Act.
  • The Show Cause Notice did not mention specific details such as:
    • the tax period involved,
    • particular invoices, or
    • details of suppliers from whom ITC was allegedly wrongly availed.
  • The cancellation order appeared to be passed based on communication/instructions from the investigating authority during an ongoing investigation.

 

Issue

  • Whether GST registration can be cancelled based on vague SCN and directions of investigating authorities, without independent application of mind by the proper officer.

 

Held

  • The High Court held that:
    • Quasi-judicial powers must be exercised independently by the adjudicating authority.
    • Such powers cannot be exercised under dictation or instructions from another authority.
    • The SCN was vague since it failed to specify the tax period, invoices, or suppliers, thereby violating principles of natural justice.
    • Cancellation of registration during investigation without proper adjudication was improper.