GST registration cancellation must rest on statutory grounds; NIL returns alone cannot justify cancellation.

GST registration can be cancelled only on grounds expressly authorised by the statute; filing NIL returns for the last two years is not one of the enumerated grounds under the cancellation provision. Because the cancellation rested on a reason outside the statutory framework, the show cause notice and cancellation order could not be sustained. The court accordingly quashed the notice and set aside the registration cancellation for want of a permissible legal basis.

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Issues: (i) Whether filing of NIL returns for the last two years is a valid ground for cancellation of GST registration under Section 29 of the GST Act.

Analysis: The power to cancel registration is confined to the circumstances enumerated in the relevant provision governing cancellation. Filing of NIL returns is not one of the specified grounds. A cancellation order founded on a non-enumerated reason therefore lacks statutory support and cannot be sustained.

Conclusion: Filing of NIL returns was held not to be a valid ground for cancellation of registration, and the show cause notice and cancellation order were quashed.

Final Conclusion: The registration cancellation was set aside for want of a permissible statutory basis.

Ratio Decidendi: Cancellation of GST registration can be made only on grounds expressly authorised by the governing statute, and a reason not contemplated by the statutory grounds is invalid.

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