Cancellation of Registration must be Reasonable and not Arbitrary u/s 29(2) of GST Act: Delhi HC sets aside Order

The Delhi High Court ruled that the cancellation of GST registration must be reasonable and not arbitrary under Section 29(2) of the GST Act. The court set aside the previous order of cancellation, highlighting that the decision-making process must be transparent and provide a valid rationale. The court emphasized that authorities need to adhere to principles of natural justice and ensure that any cancellation order is well-founded and communicated effectively to the affected parties. This ruling underscores the necessity for due process and reasonable justification in administrative actions concerning GST registration.