Mandatory hearing before GST registration cancellation led to quashing of the order and remand for fresh decision.

Cancellation of GST registration requires observance of the statutory hearing safeguard under section 29 of the CGST Act, and Rule 22(3) of the Uttarakhand GST Rules requires the cancellation application to be decided within thirty days of the application or reply to the show-cause notice. As the impugned order did not show compliance with the mandatory opportunity of hearing, the High Court held the cancellation order unsustainable and quashed it. The matter was remitted for fresh decision after affording the petitioner a hearing.

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Issues: Whether the order cancelling GST registration was liable to be quashed for want of opportunity of hearing and for being passed beyond the period prescribed for disposal of the cancellation application.

Analysis: Section 29 of the Central Goods and Services Tax Act, 2017 makes an opportunity of hearing mandatory before cancellation of registration. Rule 22(3) of the Uttarakhand Goods and Services Tax Rules, 2017 prescribes that where an application for cancellation is filed, the proper officer shall pass the order within thirty days from the date of application or the reply to the show-cause notice. The impugned cancellation order did not reflect compliance with the hearing requirement, and the matter was treated as one where the statutory safeguard had not been observed.

Conclusion: The cancellation order was unsustainable and was quashed. The matter was remitted for fresh decision after affording the petitioner an opportunity of hearing.

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