GST Cancellation Arbitrary

This ruling is a sharp reiteration that GST registration cancellation carries severe civil consequences and must meet strict procedural fairness standards. 

The Court condemns mechanical, template-driven adjudication and emphasizes that reasoned notices and speaking orders are non-negotiable. 

Importantly, even where business activity was temporarily halted, bona fide explanations must be examined, failing which the entire proceeding collapses. 

The judgment also continues the Bombay High Court’s consistent line of strict scrutiny of defective GST cancellation actions.