TaxTMI 
TaxTMI 
2026 (6) TMI 163
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....as been submitted on behalf of the petitioner that the petitioner is duly registered with the GST Department under the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "Act of 2017") and is engaged in the business of old iron scraps. A show cause notice was issued to the petitioner on 15.12.2025 with regard to the violation of the provisions of Section 16 of the Act of 2017, directing him to file his reply within seven days and to appear before the competent authority on 18.12.2025. The petitioner neither filed his reply nor appeared before the competent authority, consequent to which his registration was cancelled by means of an order dated 07.01.2026. 4. The petitioner, on coming to know about ....
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....y while passing the order dated 06.02.2026 rejecting his application for revocation of cancellation of registration. 6. This Court is of the considered view that when a show cause notice was issued to the petitioner asking him to furnish his reply, pursuant to which the petitioner filed his response, all the grounds taken therein ought to have been considered by the competent authority while deciding the application for revocation of cancellation of registration. 7. It is further noticed that reasons are the heartbeat of any order, and bereft of reasons, such an order would be arbitrary and illegal. Whenever a reply is tendered against a show cause notice, even if it is found to be unsatisfactory, the competent authority has to record....
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....eal, revision or judicial review. In our opinion, therefore, the requirement that reasons be recorded should govern the decisions of an administrative authority exercising quasi-judicial functions irrespective of the fact whether the decision is subject to appeal, revision or judicial review. It may, however, be added that it is not required that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. What is necessary is that the reasons are clear and explicit so as to indicate that the authority has given due consideration to the points in controversy. The need for recording of reasons is greater in a case where the order is passed at....
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....rdingly, the objection of the respondents with regard to the maintainability of the petition is rejected. 12. Learned counsel for the respondents has also referred to the judgment and order dated 12.05.2026 passed by this Court in Writ Tax No. 629 of 2026, Saurabh Kumar Gupta vs. Union of India through Secretary, Ministry of Finance, New Delhi and 2 Others, to contend that the petitioner should be relegated to avail the remedy of appeal under Section 107 of the Act of 2017, as after due investigation proceedings for cancellation of registration were undertaken upon sufficient material being found against the petitioner and there is no defect in the show cause notice. 13. The judgment relied upon by learned counsel for the respondents ....
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.... circumstances, has set aside the order passed, which was found to be in violation of principles of natural justice. 4. Learned Standing Counsel is not in a position to dispute the fact that the date, apparently on account of some typographical mistake, was fixed prior to the date of filing reply and that the petitioner, in fact, was not provided any opportunity of hearing. 5. In view of above fact situation, wherein the provisions of Section 75(4) of the Act, envisage providing opportunity of hearing and the same apparently has been negated on account of fixing date of hearing prior to the filing of reply, the order impugned dated 05.01.2024 passed by the respondent no. 3 cannot be sustained. 14. Similarly, while issui....