GST registration cancellation set aside after bona fide non-response was accepted and restoration was ordered with compliance conditions.

The Karnataka HC accepted the petitioner's explanation that non-response to the show-cause notice and non-appearance at hearing were due to bona fide reasons, unavoidable circumstances, and sufficient cause. Taking a justice-oriented view, the Court set aside the GST registration cancellation and the order rejecting condonation of delay, and directed restoration of the registration. The petitioner was directed to file the pending returns and discharge tax dues with applicable penalty and interest as a condition for relief.

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Issues: Whether the orders cancelling the GST registration and rejecting condonation of delay were liable to be quashed and the registration restored where the petitioner claimed bona fide reasons for non-response and non-appearance.

Analysis: The Court accepted the petitioner's explanation that the failure to reply to the show-cause notice and attend the hearing was attributable to bona fide reasons, unavoidable circumstances, and sufficient cause. Taking a justice-oriented view, the Court found it appropriate to set aside both impugned orders and afford the petitioner one more opportunity, with the safeguard that the petitioner would file the pending returns and pay the tax dues with applicable penalty and interest.

Conclusion: The cancellation and the appellate rejection were quashed, and the petitioner's GST registration was directed to be restored, in favour of the petitioner.

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