Procedural fairness in GST cancellation: failure to record reasons or hear registrant requires fresh adjudication and hearing.

Cancellation of GST registration issued without recorded reasons and without considering the registrant's emailed reply, extension request, or request for personal hearing is procedurally defective; the matter requires fresh adjudication that takes into account the petitioner's submissions and affords an opportunity to be heard. The court directed reconsideration of the cancellation and ordered that any application to cancel the earlier registration arising from a subsequent registration be considered before deciding on the show-cause notice dated 26.09.2023.

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Issues: Whether the impugned cancellation of GST registration is sustainable where the cancellation order does not record reasons and does not advert to the reply and request for personal hearing submitted by the registrant.

Analysis: The order cancelling registration was issued without assignment of reasons and contains no reference to the petitioner's email-reply, request for extension of time, or request for personal hearing. Evidence was placed before the Court that explanations and documents had been produced to show business activity at the declared place and that a fresh registration had been subsequently obtained. The matter therefore requires fresh adjudication which takes into account the petitioner's submissions and any application for cancellation of the earlier registration in view of the subsequent registration.

Conclusion: The cancellation order is unsustainable and the matter is to be reconsidered after affording the petitioner an opportunity of hearing; any application for cancellation of the earlier registration arising from the subsequent registration shall also be considered before deciding on the show-cause notice dated 26.09.2023.

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