GST registration cancellation invalid as order passed under dictation without independent reasoning { Shashi Kumar Choudhury vs. Union of India [2026] 184 taxmann.com 572 (Gauhati)}
Facts:
- Assessee’s GST registration was cancelled by the Proper Officer during the course of investigation.
- The order was passed based on directions/communication from the investigating authority and the show cause notice was vague.
Issue:
- Whether GST registration cancellation is valid when the Proper Officer passes the order under the dictation of another authority without independent application of mind.
Held:
- The High Court held that a quasi-judicial authority must exercise independent judgment while passing orders.
- Since the cancellation was passed without independent reasoning and merely under dictation, it violated principles of natural justice.
- Accordingly, the cancellation order was set aside.
