GST cancellation order quashed for inconsistent notice, non-consideration of reply, and mechanical exercise of power.

A GST registration cancellation order was quashed because the show-cause notice and the cancellation order were materially inconsistent, the authority acted mechanically, and the petitioner's reply was not properly considered. The High Court held that writ interference was justified where the defect was apparent on the face of the record and the authority had not exercised jurisdiction in accordance with the statute. The availability of revocation under Section 30 of the CGST Act did not bar relief in these circumstances. GST registration was restored.

---

---

Issues: Whether the order cancelling GST registration was liable to be quashed on account of discrepancies between the show-cause notice and the cancellation order, non-consideration of the reply, and the availability of an alternative statutory remedy.

Analysis: The show-cause notice and the cancellation order were found to be materially inconsistent, with the notice and the impugned order relating to different grounds and the authority having acted in a mechanical manner. The record showed that the authority did not properly advert to the contents of the notice or the petitioner's reply before passing the cancellation order. Although revocation under Section 30 of the Central Goods and Services Tax Act, 2017 was available as a statutory remedy, the Court held that interference was warranted because the authority had not exercised jurisdiction in accordance with the statute and the defects were apparent on the face of the record.

Conclusion: The cancellation order was unsustainable and was quashed, and restoration of GST registration followed.

Ratio Decidendi: A GST cancellation order founded on a discrepant show-cause notice and passed without proper consideration of the reply, reflecting a mechanical exercise of power, is liable to be quashed in writ jurisdiction notwithstanding the availability of revocation under the statute.

---