Quasi-judicial independence: cancellation and revocation must be based on independent, speaking reasons and adequate notice.

Show-cause notices must disclose essential particulars; omission of tax period, invoices, suppliers and quantification vitiated the notice and denied a meaningful opportunity to be heard. Cancellation under the statutory scheme requires independent quasi-judicial satisfaction; mechanically acting on an investigating officer's request during an ongoing probe amounted to dictation and rendered the cancellation unsustainable. Rejection of revocation must be a speaking, independent decision; a pre-declared outcome and verbatim adoption of investigative conclusions produced a non-speaking order showing predetermination and was unsustainable. Cumulative defects required setting aside the communications and restoring registration while permitting fresh proceedings with full particulars and hearing.

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Issues: (i) Whether the show-cause notice proposing cancellation of GST registration was vitiated by vagueness and non-disclosure of material particulars; (ii) Whether the order cancelling GST registration was passed under dictation without independent exercise of quasi-judicial power; (iii) Whether the order rejecting revocation of cancellation was non-speaking and reflected pre-determination.

Issue (i): Validity of the show-cause notice in terms of disclosure of tax period, invoices, suppliers and quantification of alleged ineligible input tax credit.

Analysis: The notice reproduced statutory language alleging availing of input tax credit in violation of Section 16 of the Act, 2017 but omitted identification of tax period, invoices, suppliers and quantification. Such omission deprived the noticee of particulars necessary to formulate an effective response and frustrated the requirement of due notice and a meaningful opportunity to be heard under the applicable statutory scheme.

Conclusion: The show-cause notice is vitiated by vagueness and non-disclosure of material particulars.

Issue (ii): Legitimacy of the cancellation order issued under Rule 21(e) of the Rules, 2017 and Section 29 of the Act, 2017 where cancellation followed a request from an investigating officer while investigation was ongoing.

Analysis: The cancellation was grounded on a communication from an investigating authority made during an ongoing investigation and no record shows independent evaluation or satisfaction by the quasi-judicial authority. The statutory scheme requires independent exercise of discretion when imposing the civil consequence of cancellation; acting at the dictate of an investigative wing substitutes mechanical endorsement for independent adjudication and undermines the rule of law.

Conclusion: The cancellation order was passed under dictation and without independent exercise of quasi-judicial power; it is unsustainable.

Issue (iii): Validity of the order rejecting revocation of cancellation where the show-cause/communication records liability to reject at the outset.

Analysis: The communication styled as a show-cause on revocation recorded the investigative finding and stated the application was liable to be rejected before considering the applicant's explanation. The final rejection reproduced those reasons verbatim without independent reasoning or analysis of whether the alleged facts satisfied Section 16(2) or attracted Rule 21(e). A notice that pre-declares rejection and a verbatim non-speaking final order indicate predetermination and denial of a meaningful hearing.

Conclusion: The revocation rejection is a non-speaking order reflecting pre-determination and is unsustainable.

Final Conclusion: The cumulative defects found in the notice, cancellation order and revocation rejection warrant setting aside the impugned communications and restoration of registration, while preserving the authority's right to initiate fresh proceedings in accordance with law by issuing detailed particulars and affording a meaningful opportunity of hearing.

Ratio Decidendi: A quasi-judicial authority exercising cancellation powers under the CGST Act and Rules must act on its own independent satisfaction based on particulars disclosed to the noticee; a show-cause notice must state essential material particulars and a decision that predetermines outcome or mechanically adopts an investigative dictum without independent reasoning is vitiated.

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