2026-VIL-601-GAU
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SGST High Court Cases

GST - Cancellation of GST Registration - Requirement of Speaking Order – Issue of Show Cause Notice for failure to furnish returns for a continuous period of six months but the SCN did not specify the exact period during which returns were not filed – The cancellation order was passed without petitioner furnishing any reply or appearing for personal hearing - Whether the cancellation of GST registration is valid when the cancellation order does not assign proper reasons – HELD – The statutory prescription to record reasons as mandated by Form GST REG-19 under Rule 22(3) of the CGST Rules, 2017 - The adjudicating authority exercising statutory power of cancellation under the Act must record reasons for its decision as it is implicit in the principles of natural justice and fair play and forms part of fair procedure, particularly when the decision affects the rights of the person concerned. Recording of reasons is a check against arbitrary action and demonstrates conscious application of mind - The statute itself prescribes that reasons must be recorded in the decision through Form GST REG-19, and absence of reasons violates this statutory prescription and renders the order illegal. The fact that the assessee did not submit any reply or appear before the officer does not absolve the officer from the obligation of passing a speaking order, as any order bringing adverse consequences cannot be a mere paper formality - The impugned cancellation order is set aside and quashed and the matter is reverted to the stage of issuance of the show cause notice - The writ petition stands allowed
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GSTAT Outreaches, Filing Intricacies...
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