Speaking Order Mandatory

The Gauhati High Court has held that an order cancelling GST registration must be a reasoned and speaking order conforming to the statutory requirements prescribed under Rule 22 of the CGST Rules, 2017 and Form GST REG-19. 

The Court observed that cancellation of registration has serious civil consequences and cannot be sustained merely because the taxpayer failed to respond to the show cause notice. 

Since the impugned cancellation order contained no reasons and reflected complete non-application of mind, it was quashed with liberty to the taxpayer to either respond to the show cause notice or regularise the default by filing pending returns and discharging the outstanding tax liabilities.