GST registration cancellation may be set aside when bona fide reasons justify non-response, with restoration tied to compliance.

GST registration cancellation and refusal to condone delay in revocation proceedings may be set aside where non-response to the show-cause notice is explained by bona fide reasons and unavoidable circumstances. On a justice-oriented approach, the adverse orders can be quashed to afford the taxpayer one more opportunity, with restoration linked to compliance. The text notes that restoration may be directed subject to filing returns and payment of tax dues, penalty, and interest within the time granted.

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Issues: Whether the order cancelling the GST registration and the order rejecting condonation of delay in the revocation proceedings were liable to be quashed, and whether the GST registration was required to be restored.

Analysis: The petitioner asserted that non-appearance and failure to reply to the show-cause notice occurred for bona fide reasons and due to unavoidable circumstances. Accepting that explanation and adopting a justice-oriented approach, the Court found it appropriate to set aside both the cancellation order and the order rejecting the delay condonation application, so that the petitioner could be given one more opportunity. The petitioner also undertook to file returns and pay the tax dues, along with applicable penalty and interest, within the time granted.

Conclusion: The impugned orders were quashed and the respondents were directed to restore the GST registration within four weeks, subject to compliance with the stated tax obligations.

Final Conclusion: The petitioner obtained restoration of GST registration after both adverse orders were set aside, with compliance conditions attached to the revival of registration.

Ratio Decidendi: Where cancellation of registration follows non-response attributable to bona fide reasons and sufficient cause is shown, a justice-oriented approach may justify setting aside the adverse orders and granting an for restoration subject to compliance.

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