Cancellation of GST registration was invalid because the proper...

Cancellation of GST registration was invalid because the proper officer failed to record reasons in the prescribed Form GST REG-19 and passed a non-speaking order without application of mind. The Court held that cancellation entails adverse civil consequences, so a speaking order is mandatory even if the taxpayer did not reply to the show cause notice or appear. Recording reasons was treated as part of fair procedure and a safeguard against arbitrary exercise of power. The cancellation order was set aside, and the matter was restored to the show cause notice stage with liberty to the taxpayer to reply or regularise the default, after which the officer must proceed afresh in accordance with law.

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