Reasoned GST cancellation orders are mandatory; a non-speaking rejection cannot stand and must be reconsidered afresh.

A GST cancellation rejection must disclose the factual and legal basis for refusing the application; a bare statement that the reply is unsatisfactory is insufficient. Where the order gives no reasons or reveals no consideration leading to refusal, it cannot be sustained in law. The Delhi HC therefore quashed the impugned rejection and required the voluntary cancellation application to be reconsidered afresh by the competent authority in accordance with law.

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Issues: Whether the rejection of the application for voluntary cancellation of GST registration could be sustained when the impugned order disclosed no reasons.

Analysis: The rejection order merely stated that the reply was not satisfactory and rejected the application in accordance with the provisions of the Act, without indicating any factual or legal basis for the decision. Such an order did not reveal the consideration that led to refusal of cancellation and therefore could not be sustained.

Conclusion: The impugned rejection order was quashed and the application for cancellation was directed to be reconsidered afresh by the competent authority in accordance with law.

Ratio Decidendi: A rejection of GST cancellation application that does not disclose reasons cannot be sustained and must be set aside for fresh consideration in accordance with law.

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