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2025 (3) TMI 1333 - HC - GSTCancellation of GST Registration under the Central Goods and Services Tax - it is contended that manner in which the GST Registration has been cancelled is arbitrary and the impugned Order of cancellation has been passed without due application of mind - violation of principles of natural justice - HELD THAT - On perusal of the impugned Order it is evidently clear that the impugned Order is not in conformity with the procedure prescribed in FORM GST REG-19. A speaking order is one which expressly states the reasons for the decision. In other words a speaking order speaks for itself by assigning the reasons behind the conclusion. If an order is passed without giving a reason by the concerned authority then the order is a non-speaking one. Non-speaking order is one which does not provide a clear reason for its decision. The fact that the petitioner-assessee did not submit any Reply to the Show Cause Notice dated 11.10.2023 or did not appear before the Proper Officer when he was called upon to do so does not absolve the Proper Officer from the obligation of passing a speaking order as any order which brings adverse consequence to a person cannot be a mere paper formality. A submission has been made that the writ petition has been preferred with delay as the petitioner has filed the writ petition in February 2025 that is after about one year from the order of cancellation of registration. Although the petitioner has not approached the Court immediately after the order of cancellation of registration this Court is of the considered view that when the extent of vulnerability of the order of cancellation of registration is due to not meeting the statutory prescription of recording reasons is pitted against the delayed approach the vulnerability of the order of cancellation of registration would far outweigh the delayed approach because of its likely adverse affect on a registered person like the petitioner. It is open for the petitioner-assessee to submit a Reply to the Show Cause Notice dated 11.10.2023 showing reason s as to why the GST Registration should not be cancelled in terms of sub-rule 2 of Rule 22 of the CGST Rules read with Section 29 2 c of the CGST Act. In the alternative the petitioner-assessee at the time of and/or instead of replying to the Show Cause Notice served under sub-rule 1 of Rule 22 of the CGST Rules can furnish all the pending returns and make full payment of the tax dues along with the applicable interest late fee and penalty if any. It is therefore observed that it would be open for the petitioner-assessee to avail either of the two options. Conclusion - The impugned cancellation order quashed due to its procedural deficiencies and lack of reasoning. The matterias reverted to the stage of issuance of the show cause notice allowing the petitioner to respond or comply with the requirements for revocation of cancellation. Petition allowed by way of remand.
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