GST registration cancellation quashed where bona fide default was shown and one further opportunity to regularise compliance was granted.

Cancellation of GST registration was set aside where the default in responding to assessment proceedings and filing returns was explained by bona fide reasons, unavoidable circumstances and sufficient cause. Applying a justice-oriented approach, the Court granted one further opportunity to comply with statutory obligations and directed restoration of registration, subject to filing the pending returns and paying the tax dues, interest and penalty within the stipulated time. The decision turns on the principle that a compliance default may be cured when the explanation is credible and the assessee is allowed to regularise the breach by immediate statutory compliance.

---

---

Issues: Whether the cancellation of GST registration was liable to be quashed and the registration restored by granting the petitioner an opportunity to file returns and clear dues.

Analysis: The petitioner's omission to respond to the assessment proceedings and consequent cancellation of registration was explained as arising from bona fide reasons, unavoidable circumstances and sufficient cause. Accepting that explanation, and adopting a justice-oriented approach, the Court held that the impugned cancellation order should be set aside and the matter remitted so that the petitioner may comply with the statutory requirements by filing returns and paying taxes due.

Conclusion: The cancellation order was quashed and the respondents were directed to restore the GST registration, subject to the petitioner filing the pending GST returns and paying up-to-date tax with interest and penalty within the stipulated period.

Final Conclusion: The writ petition succeeded, resulting in restoration of registration on compliance with the specified tax obligations.

Ratio Decidendi: Where the default is explained by bona fide and sufficient cause, a justice-oriented approach may justify quashing cancellation of GST registration and granting one further opportunity to comply with statutory tax obligations.

---