GST registration cancellation without reasons and application of mind set aside; matter restored for fresh consideration.

GST registration cancellation was held unsustainable where the order contained only the bare statement that registration was cancelled, without reasons or discernible application of mind, despite its civil consequences on the ability to carry on business. The cancellation was set aside and the matter was restored to the stage of the show-cause notice. The taxpayer was allowed to file an additional reply, including the later filing of returns, and the authority was directed to reconsider the matter afresh in accordance with law.

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Issues: Whether the cancellation of GST registration was liable to be set aside for want of reasons and non-application of mind, with consequential restoration of the matter to the stage of the show-cause notice.

Analysis: The impugned cancellation order affected the petitioner's ability to carry on business and therefore carried civil consequences. The cancellation was based only on the bare statement "Registration is cancelled", without any justifiable reasons or discernible application of mind. In these circumstances, the order could not be sustained. Since the petitioner stated that returns had later been filed, the petitioner was permitted to place that and other grounds before the authority by filing an additional reply to the show-cause notice, whereafter the authority was to proceed in accordance with law.

Conclusion: The cancellation order was set aside and the registration position was restored to the stage of the show-cause notice, with liberty to file an additional reply and for the authority to decide the matter afresh.

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