Reasoned GST registration cancellation is required; a non-speaking order with civil consequences was set aside.

Cancellation of GST registration by a quasi-judicial authority was unsustainable where the order gave no reasons and showed non-application of mind, especially because it had civil consequences by disabling the taxpayer from carrying on business. The HC set aside the cancellation order and restored the registration position to the stage of the show-cause notice, allowing the taxpayer to file a reply and requiring the authority to proceed in accordance with law.

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Issues: Whether the cancellation of GST registration, passed without reasons, could be sustained.

Analysis: The cancellation order was passed by a quasi-judicial authority and had the effect of disabling the petitioner from carrying on business, thereby attracting civil consequences. The order disclosed no reasons for cancellation and reflected non-application of mind.

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 a reply and for the authority to proceed in accordance with law.

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