Speaking order and natural justice requirements govern GST registration cancellation; orders set aside and matter remanded.

Cancellation of GST registration was found unsustainable because the cancellation order lacked material particulars and reasons, and the consequential penalty was imposed without prior notice or hearing. The appellate authority also failed to deal with the taxpayer's explanation and the material on record, making the appellate rejection inconsistent with the requirement of a speaking order and the principles of natural justice. The HC therefore set aside both orders and remanded the matter to the assessing authority at the show cause notice stage for fresh decision after furnishing detailed reasons, granting hearing, and proceeding in accordance with law.

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Issues: Whether the cancellation of GST registration and the appellate rejection of revocation were unsustainable for want of reasons and opportunity of hearing, and whether the matter required remand to the show cause notice stage.

Analysis: The cancellation order was found to be devoid of material particulars and reasons, while the consequential penalty was also imposed without prior notice or hearing. The appellate order was passed without properly dealing with the petitioner's explanation and the material placed on record. In such circumstances, the action was held to be contrary to the requirement of a speaking order and the principles of natural justice. The Court therefore set aside the cancellation and appellate orders and sent the matter back to the assessing authority at the show cause notice stage, with directions to furnish detailed reasons, grant hearing, and decide the matter afresh in accordance with law.

Conclusion: The cancellation and appellate orders were quashed, and the proceedings were remanded for fresh consideration after due notice and hearing.

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