Natural justice and reasoned order requirements made the registration cancellation invalid and remitted for fresh consideration.

Cancellation of a registration certificate under the governing sales tax provision required compliance with the statutory procedure, including an effective hearing and a reasoned order. After the dealer filed a reply to the show-cause notice, the authority was obliged to fix the matter for hearing and decide it fairly, but the record did not disclose any proper cancellation order or reasons. The High Court treated this as a breach of natural justice and non-compliance with the mandatory procedure, and held the cancellation action invalid and without jurisdiction; the impugned communication was quashed and the matter remitted for fresh consideration after hearing the dealer.

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Issues: Whether cancellation of the petitioner's registration certificate was valid when the authority did not grant an effective hearing or pass a reasoned order as required by the governing sales tax provision.

Analysis: The registration certificate could be cancelled only by following the statutory procedure and by passing an order containing reasons. After the petitioner filed its reply to the show-cause notice, the authority was required to fix the matter for hearing and decide it fairly. Instead, the certificate was treated as cancelled without communicating any proper order to the petitioner, and the record did not disclose a reasoned cancellation order. This amounted to violation of natural justice and non-compliance with the mandatory procedure under the relevant provision governing grant and cancellation of registration.

Conclusion: The cancellation action was invalid and without jurisdiction. The impugned communication was quashed and the matter was sent back for fresh consideration after giving the petitioner an opportunity to present its case.

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