The petitioner challenged cancellation of GST registration on the ground that the show cause notice was vague and did not disclose any specific reasons warranting cancellation. The factual background showed that the notice merely contained a standard template allegation without reference to any concrete violation, and no effective opportunity of hearing was granted before passing the cancellation order.

The Court held that cancellation of registration has serious civil consequences and must be preceded by a valid show cause notice disclosing clear reasons. Mechanical cancellation without application of mind and without granting opportunity of hearing violates principles of natural justice. The impugned cancellation order was set aside with liberty to the department to proceed afresh in accordance with law.