An adjudicating authority is mandatorily obligated to issue a reasoned, speaking order when cancelling a registration, regardless of whether a response was filed. Failure to provide specific reasons violates fundamental fairness and indicates a lack of application of mind, rendering the administrative action arbitrary and legally unsustainable.

JUDGMENT :

MANISH CHOUDHURY, J.

The petitioner has approached this Court by the instant writ petition, preferred under Article 226 of the Constitution of India, on the premise that his GST Registration under the Central Goods and Services Tax [CGST] Act, 2017 has been cancelled by an Order dated 10.02.2025 pursuant to issuance of a Show Cause Notice dated 05.11.2024. The assail is made inter- alia on the grounds that the 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.

2. It is the case of the petitioner that he is engaged in business of providing security service under the aegis of his proprietorship concern, ‘M/s Valiant Security Service’ and his principal place of business is at Hatigarh Chariali Bamunimaidam, Railway Colony Road, Guwahati, Pin – 781021, District – Kamrup [Metro], Assam. The petitioner got himself registered under the Central Goods and Services Tax [CGST] Act, 2017 [‘the CGST Act’, for short]/State Goods and Services Tax [SGST] Act, 2017 [‘the SGST Act’, for short]. It is stated that when the petitioner applied for registration, the petitioner was issued a Registration Certificate in Form GST REG-06 with Registration no. 18AURPS3283N52G w.e.f. 17.05.2018.

3. The petitioner was issued the Show Cause Notice on 05.11.2024 by the Proper Officer asking him to show cause as to why the Registration issued to him under the CGST Act should not be cancelled. The petitioner was thereby, asked to furnish a Reply within thirty days from the date of service of the Show Cause Notice. The petitioner was also directed to appear before the Proper Officer at 11-00 on 03.12.2024. It was further mentioned that if the petitioner would fail to furnish a Reply within the stipulated date or would fail to appear for personal hearing on the appointed date and time, the case would be decided ex-parte on the basis of the available records and on merits. By the Show Cause Notice, the petitioner’s Registration under the CGST Act had also been suspended w.e.f. 05.11.2024.

4. Thereafter on 10.02.2025, the impugned Order came to be passed whereby the petitioner’s GST Registration has been cancelled w.e.f. 10.02.2025.

5. I have heard Mr. R.S. Misra, learned counsel for the petitioner and Mr. H. Baruah, learned counsel appearing on behalf of Mr. B. Gogoi, learned Standing Counsel, Finance & Taxation Department, Government of Assam for all the respondents.

6. Mr. Misra, learned counsel for the petitioner has submitted that in response to the Show Cause Notice, which was uploaded in the common portal, the petitioner could not submit its Reply due to reasons beyond his control as it escaped its notice. It is projected that during the relevant period, the business of the petitioner was facing rough weather and its financial situation was in downward spiral. During the said period of bad business and financial condition, statutory compliance regarding filing of return escaped his attention. It is submitted that the petitioner came to learn about the Show Cause Notice when the time for filing the Reply was already over and the impugned Order dated 10.02.2025 had already been uploaded in the common portal. The petitioner could submit upto February, 2025, as allowed by the GST Portal. Though the petitioner tried to submit an application for