Natural justice in GST registration cancellation requires fair hearing and speaking reasons before adverse civil consequences are imposed.

Adverse GST registration action carrying civil consequences cannot stand unless the affected person is given a fair hearing and the authority records clear reasons in a speaking order. Here, the cancellation of registration, rejection of revocation, and appellate order were found unsustainable because the show-cause notice lacked adequate particulars, no meaningful opportunity of hearing was granted, and the orders did not disclose reasons. The HC applied the settled rule that natural justice requires notice, hearing, and reasoned decision-making, and quashed all impugned orders. Fresh proceedings were permitted, with a fresh notice and a reasoned order after hearing the petitioner.

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Issues: Whether the cancellation of GST registration, rejection of revocation, and appellate order were liable to be quashed for breach of natural justice due to absence of hearing and reasons.

Analysis: The petition challenged the cancellation of registration, refusal to revoke the cancellation, and the appellate rejection on the ground that the authorities had proceeded without giving a meaningful opportunity of hearing and without recording reasons. The Court relied on the settled principle that where an order visits a person with civil consequences, the authority must furnish reasonable opportunity and pass a speaking order. It was found that the show-cause notice and the impugned orders did not disclose adequate reasons, no effective hearing was granted before the appellate order, and the case was materially similar to the earlier decision holding that cancellation proceedings under GST must comply with natural justice.

Conclusion: The impugned cancellation, revocation rejection, and appellate order were unsustainable and were quashed and set aside. The respondents were permitted to issue a fresh notice with particulars and then pass a reasoned order after giving the petitioner an opportunity of hearing.

Final Conclusion: The petition succeeded on the ground of violation of natural justice, and the matter was sent back for fresh proceedings in accordance with law.

Ratio Decidendi: An adverse GST registration action having civil consequences cannot stand unless the affected person is given a fair hearing and the authority records clear reasons in a speaking order.

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