Natural justice in GST registration cancellation: vague notice and non-speaking order were quashed, with registration revived.

A GST registration cancellation based on a vague show cause notice was found to violate natural justice because the notice lacked material particulars and the cancellation order did not address the taxpayer's reply or give discernible reasons. As cancellation of registration has civil and penal consequences, the authority was required to consider the objections and pass a reasoned order. In the absence of such consideration, the action was held arbitrary and unsustainable. The notice and cancellation order were quashed, the registration was directed to be revived, and the matter was remitted for de novo proceedings in accordance with law.

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Issues: Whether the show cause notice and the consequential order cancelling GST registration were vague and non-speaking, thereby violating natural justice and warranting quashing and restoration of registration.

Analysis: The notice did not contain material particulars and the cancellation order did not refer to the reply or disclose discernible reasons. Cancellation of registration carries civil and penal consequences, so the authority was required to deal with the objections and pass a reasoned order. In the absence of such consideration, the action was held to be arbitrary and contrary to natural justice.

Conclusion: The show cause notice and the cancellation order were quashed, and the registration was directed to stand revived. The matter was remitted for de novo proceedings in accordance with law.

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