Section 29 of the CGST Act, 2017— Cancellation of GST Registration -– The petitioner challenged the SCN dated 26.04.2022 as well as order dated 07.05.2022, whereby registration of the petitioner was cancelled. In the order, on the one hand, reply dated 06.05.2022 was referred to, and on the other hand, it was mentioned that whereas no reply to notice to show cause was submitted. The court observed that the show-cause notice as well as the impugned order would indicate that the notice was vague and was without any particulars. The order did not disclose any reason for cancellation of registration. A nonspeaking order which does not disclose the reason and does not specify the grounds on which the decision is rested could be said to be amounting to breach of natural justice.

Held that:- The Hon’ble High Court set aside the order and directed that it will be open for the respondents to issue fresh notice in accordance with law and containing the grounds and reasons. Final order may be passed by the authority within six weeks thereafter after giving an opportunity of hearing.