Reasoned GST registration cancellation is mandatory; an unreasoned cancellation with civil consequences was set aside for fresh consideration.

An unreasoned cancellation of GST registration by a quasi-judicial authority, which carried civil consequences by disabling business activity, was held unsustainable because it showed non-application of mind. The cancellation order was set aside, and the registration was restored to the stage of the show cause notice for fresh consideration in accordance with law. The authority was required to consider the taxpayer's response, including subsequent return filings and other grounds placed before it, before taking any further action.

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Issues: Whether cancellation of GST registration without assigning reasons was sustainable, and whether the matter required restoration for fresh consideration.

Analysis: The impugned cancellation order was passed by a quasi-judicial authority and entailed civil consequences by disabling the petitioner from carrying on business. The order disclosed no reasons, reflecting non-application of mind. The petitioner was also permitted to place subsequent return filings and other grounds before the authority.

Conclusion: The cancellation order was set aside and the registration position was restored to the stage of the show cause notice for fresh action in accordance with law.

Final Conclusion: The petitioner obtained relief against the cancellation, and the competent authority must reconsider the matter after receiving the petitioner's response.

Ratio Decidendi: A quasi-judicial cancellation order affecting civil consequences must be reasoned, and an unreasoned cancellation of GST registration is liable to be set aside for fresh consideration.

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