Reasoned GST cancellation orders and hearing requirements must be followed, or the cancellation may be quashed and remanded.

An order cancelling GST registration must be supported by reasons and passed in compliance with the prescribed procedure, including a proper opportunity of hearing; where these safeguards are absent, the action is unsustainable. The Bombay High Court quashed the cancellation order for want of reasons and procedural fairness, remanded the matter for fresh adjudication after notice and personal hearing, and restored the GST registration subject to any fresh action permissible in law.

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Issues: Whether the order cancelling the GST registration could be sustained when it disclosed no reasons and whether the matter should be remanded for fresh adjudication after notice and hearing.

Analysis: The cancellation order was found to be unsupported by reasons, and the requirement to record reasons while passing such an order was treated as settled. The absence of a proper opportunity of hearing and non-compliance with the prescribed procedure rendered the impugned action unsustainable. Since the petitioner supplied current contact details, the matter could be sent back to the designated authority to issue a fresh show cause notice, grant a personal hearing, and pass a reasoned order in accordance with law within a fixed time.

Conclusion: The cancellation order was quashed and set aside, the proceedings were remanded for fresh consideration, and the GST registration stood restored, subject to any fresh action permissible in law.

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