GST registration cancellation without reasons is arbitrary; time-barred appeal does not bar writ challenge under merger doctrine.

A GST registration cancellation order that records no reasons and shows no application of mind is arbitrary, because a quasi-judicial order with civil consequences must disclose brief but intelligible reasons and comply with the statutory scheme of notice and revocation. The cancellation was therefore unsustainable. Where the statutory appeal was dismissed only as time-barred and not on merits, the doctrine of merger did not apply, so the original cancellation order remained open to writ challenge. The cancellation was set aside and the matter was remitted for fresh consideration after hearing the taxpayer.

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Issues: (i) Whether the order cancelling the GST registration could be sustained when it recorded no reasons. (ii) Whether the dismissal of the statutory appeal as time-barred affected the writ challenge to the cancellation order.

Issue (i): Whether the order cancelling the GST registration could be sustained when it recorded no reasons.

Analysis: The cancellation order was found to be wholly bereft of reasons. A quasi-judicial or administrative order having civil consequences must disclose application of mind and reasons, however brief, especially where cancellation of registration has serious business consequences. The requirement of notice and an opportunity to seek revocation also reflects the statutory scheme under the GST law and the protection against arbitrary action under Articles 14 and 19 of the Constitution of India.

Conclusion: The cancellation order was unsustainable and was quashed.

Issue (ii): Whether the dismissal of the statutory appeal as time-barred affected the writ challenge to the cancellation order.

Analysis: The appeal was dismissed only on limitation and not on merits. In such a situation, the doctrine of merger did not apply, and the writ court could examine the original cancellation order independently. The appellate dismissal did not cure the defect in the primary order.

Conclusion: The writ challenge remained maintainable against the original cancellation order notwithstanding the time-barred dismissal of the appeal.

Final Conclusion: The GST registration cancellation was set aside, and the matter was sent back for a fresh decision after hearing the petitioner.

Ratio Decidendi: A cancellation order under the GST regime that is passed without reasons and without proper application of mind is arbitrary and liable to be quashed; where the appeal is dismissed only on limitation, the original order can still be challenged because the doctrine of merger does not apply.

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