Natural justice in GST cancellation: failure to consider the reply and grant hearing led to setting aside and remand.

GST registration cancellation was set aside where the authority failed to consider the taxpayer's reply to the show cause notice and did not grant a pre-decisional hearing. The impugned order was internally contradictory, recording both that a reply had been filed and that none was submitted, which showed non-application of mind and breach of natural justice. The existence of an alternate remedy was not treated as a bar in these circumstances. The registration was directed to be restored and the matter remanded for fresh consideration after taking the reply and hearing the taxpayer.

---

---

Issues: Whether the order cancelling the GST registration was vitiated for failure to consider the reply to the show cause notice and for absence of hearing, thereby warranting interference and remand.

Analysis: The impugned order recorded both that a reply had been filed and that no reply had been submitted, showing contradiction and non-application of mind. The petitioner's reply to the show cause notice was not considered, and no pre-decisional hearing was granted. These lapses constituted breach of the principles of natural justice and fair play, and the existence of an alternate remedy was not treated as a bar in the circumstances.

Conclusion: The cancellation order was set aside, the registration was directed to be restored, and the matter was remanded to the authority for fresh consideration after taking the reply and granting hearing.

---