Facts of the Case: The petitioner was issued a show cause notice u/s 29 , proposing cancellation of registration. The notice merely cited the legal provisions and stated that registration is liable to be cancelled if no business is conducted from the declared place of business, without providing specific details or material facts. The petitioner replied to the notice; however, an order dated 18.10.2022 cancelled the GST registration with effect from 01.07.2017. The First Appellate Authority upheld the cancellation order on 07.08.2023 by relying on additional documents. The petitioner challenged both orders, contending lack of reasons and violation of principles of natural justice.

Issue: Whether cancellation of GST registration and appellate confirmation are sustainable when the show cause notice and the order are perfunctory, vague, and unreasoned?

Held that: The High Court observed that reflection of reasons is the essence of adjudication, and GST authorities are equally bound to provide reasoned orders. The show cause notice merely referred to a statutory clause without material particulars; the cancellation order was also completely unreasoned.

The appellate authority cannot supplement reasons when the original order itself is deficient. Order dated 19.01.2023 and the appellate order dated 07.08.2023 were quashed and set aside. Liberty was granted to the department to issue a fresh, reasoned show cause notice, and the petitioner was permitted to reply; adjudication to be by a speaking order thereafter.

Case Name: M/s. Twenty First Century Iron and Steels Limited Versus Deputy Commissioner of State Tax (Appeals), Office of the Commissioner of State Tax, Panaji-Goa. State Tax Officer, Pernem Ward. dated 18.08.2025

To read the complete judgment 2025 Taxo.online 1987