Delhi HC Sets aside Unreasoned GST registration Cancellation order

The Delhi High Court overturned a GST registration cancellation order due to its lack of reasoning. The court emphasized that administrative orders must include reasoning for their decisions, ensuring transparency and fairness. The petitioner, Arvind Kumar, contended that the order against him lacked any rationale. Agreeing, the court noted the principles of natural justice were violated as Kumar wasn’t given an opportunity to be heard. It highlighted the importance of reasoned orders for enabling proper judicial review and ensuring affected parties understand the grounds of decisions against them. Consequently, the court set aside the cancellation and directed the GST department to reconsider the case, providing Kumar with an opportunity to present his case.