GST registration cancellation requires reasons; a non-speaking order was set aside and remitted for fresh hearing.

Cancellation of GST registration is a drastic measure that must rest on recorded reasons and application of mind. An assessee's failure to reply to the show cause notice or appear on the scheduled date may justify ex parte action, but it cannot by itself supply the substantive basis for cancellation. A non-speaking order that gives no reason why registration is liable to be cancelled is unsustainable. The cancellation order was set aside and the matter was remitted for fresh adjudication after permitting a further reply and affording a reasonable hearing.

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Issues: Whether the order cancelling GST registration, passed without assigning reasons, was sustainable in law, and whether the matter required remand for fresh consideration after hearing the petitioner.

Analysis: Cancellation of registration is a drastic measure affecting the right to carry on business and must rest on recorded reasons. A failure to reply to the show cause notice or to appear on the scheduled date may justify ex parte action, but cannot by itself constitute the reason for cancellation. The impugned order contained no application of mind and gave no substantive reason for concluding that the registration was liable to be cancelled, rendering it a non-speaking order.

Conclusion: The cancellation order was set aside and the matter was remitted to the Superintendent for fresh adjudication after allowing the petitioner to file a further reply and after affording a reasonable opportunity of hearing.

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