GST registration cancellation set aside for absence of reasons and non-consideration of reply, with restoration made conditional on compliance.

GST registration cancellation was held unsustainable where the impugned order did not disclose reasons, did not clearly record the alleged continuous non-filing of returns for six months, and did not show consideration of the taxpayer's reply. The cancellation was set aside, and restoration of registration was directed subject to compliance with the stated conditions, namely filing the pending returns and payment of tax, interest and penalty within the stipulated period.

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Issues: Whether the order cancelling GST registration could be sustained when it did not disclose reasons or clearly record the alleged default of non-filing of returns, and whether the cancellation was liable to be set aside with consequential restoration of registration on compliance.

Analysis: The order impugned did not state any reason or clearly record the allegation that returns had not been filed for a continuous period of six months. It also did not reflect consideration of the reply said to have been filed by the petitioner. In these circumstances, the cancellation order was found unsustainable. The Court accepted the undertaking that tax, interest, and penalty would be paid and directed restoration of registration upon filing of the pending returns and payment within the stipulated period.

Conclusion: The cancellation order was set aside and the writ petition was allowed, with restoration of registration made conditional upon compliance with the stated requirements.

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