GST Registration Cancellation Order Struck Down: Insufficient Reasoning and Denied Hearing Mandate Comprehensive Administrative Reconsideration

HC found GST registration cancellation order invalid due to lack of proper reasoning and failure to provide petitioner a hearing. The court remanded the matter back to the original authority to reconsider the cancellation, following previous precedent. The writ petition was allowed without costs, requiring a fresh administrative review with proper procedural adherence.

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Issues involved:
The legality and validity of the order cancelling Goods and Services Tax (GST) registration of the petitioner.

Details of the judgment:
The petitioner, a movie-making business, challenged the cancellation of its GST registration by the 1st respondent, followed by the rejection of the appeal by the 2nd respondent. The petitioner claimed to not have received the show cause notice leading to the cancellation. The Court noted the lack of reasons provided for the cancellation by the 1st respondent. The Court found a total non-application of mind by both respondents in passing the orders. Referring to a previous case, the Court highlighted the absence of a GST Tribunal for appeal, leading to the remand of the matter back to the 1st respondent for a fresh order after due hearing.

Separate Judgement:
A division bench of the Court in a previous case held that the matter of cancellation of GST registration should be remanded back to the authority for reconsideration and passing an appropriate order in accordance with the law. The Court followed this precedent and set aside the previous orders, remanding the matter back to the 1st respondent for a fresh decision after providing a hearing to the petitioner. The writ petition was allowed with no costs awarded, and any pending miscellaneous applications were closed.

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