Appellate order in registration cancellation set aside where Department introduced fresh material at appeal stage and taxpayer's objection was not heard: Allahabad High Court

The Court noted coordinate bench rulings that Rule 112 permits additional evidence at the appellate stage only at the instance of the taxpayer, and held that ignoring the objection vitiated the order.

The Allahabad High Court has set aside an appellate order upholding cancellation of GST registration, where the Department placed additional "inputs" before the appellate authority that formed no part of the show cause notice or the cancellation order [M/s Unique and Divine Eternity v. State of Uttar Pradesh & 2 Others].

Justice Vikas Budhwar recorded that the Department filed the material on 14.07.2026, the taxpayer objected on 17.07.2026, and the appeal was decided on 20.07.2026 without any hearing on the objection. The Court referred to coordinate bench rulings in Anandeshwar Traders and Khan Enterprises, which held that additional documents cannot be introduced by the Department at the appellate stage, as the right under Rule 112 is available to the assessee.

Without finally deciding the Rule 112 question, the Court held that the failure to hear the taxpayer after its objection violated natural justice, and remitted the appeal for a fresh decision within two months.

2026-juristway.com-3015-HC(Allahabad)-GST  |  High Court of Allahabad  |  15.10.2026