Time-bound GST cancellation procedure: suspension of registration cannot remain pending indefinitely and the officer must pass a speaking order.

Rule 22(3) requires the proper officer to issue the cancellation notice reply period and complete proceedings within the prescribed timeline, including passing an order in Form GST REG-19 within thirty days of the reply. A show-cause notice granting only seven days to respond was inconsistent with the rule, which contemplates thirty days to explain why registration should not be cancelled. Because suspension of registration has serious consequences, it cannot be left pending indefinitely while cancellation proceedings remain unresolved; the authority must proceed to a hearing and pass a speaking order within the statutory or court-fixed time.

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Issues: Whether the proper officer was bound to decide the cancellation proceedings within the statutory time after receipt of the reply, and whether the suspension of registration could be kept pending indefinitely.

Analysis: Rule 22(3) requires the proper officer to pass an order in Form GST REG-19 within thirty days from the date of the reply to the show-cause notice. The notice granting only seven days to reply was contrary to the rule, which contemplates thirty days to explain why registration should not be cancelled. Suspension of registration has serious consequences and cannot be allowed to continue indefinitely while cancellation proceedings remain pending. The authority is therefore statutorily obliged to proceed and pass an order in accordance with the prescribed timeline.

Conclusion: The cancellation proceedings were required to be taken to their logical end within the statutory time, and the suspension could not be left unresolved on a prolonged basis.

Final Conclusion: The writ petition was disposed of by directing the petitioner to place all submissions before the proper officer, and by requiring the authority to provide a hearing and pass a speaking order within the time fixed by the Court.

Ratio Decidendi: Where the statute prescribes a time-bound procedure for cancellation of registration, the proper officer must adhere to that procedure and cannot keep suspension of registration pending indefinitely.

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