GST registration cancellation invalid when reply was ignored and reasons were absent; matter remanded for fresh hearing.

GST registration cancellation could not stand where the authority recorded that no reply had been filed despite a reply being submitted, and the impugned order failed to give reasons for allegations of fraud, wilful misstatement, or suppression of facts. The breach of natural justice and non-consideration of the taxpayer's response required the matter to be reconsidered afresh, with an opportunity of hearing before any valid adjudication. The show cause notice and cancellation order were quashed, and the dispute was remanded for de novo decision-making.

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Issues: Whether the show cause notice and the cancellation order of GST registration were liable to be quashed for breach of natural justice and non-consideration of the reply filed by the petitioner, and whether the matter was required to be remanded for fresh adjudication.

Analysis: The cancellation order recorded that no reply had been filed, although the petitioner had submitted a reply to the show cause notice. The impugned order also did not assign reasons supporting the allegation of fraud, wilful misstatement, or suppression of facts. In view of the breach of natural justice and the need to follow the directions governing cancellation of registration, the matter required fresh consideration after granting an opportunity of hearing.

Conclusion: The show cause notice and cancellation order were quashed and set aside, and the matter was remanded for de novo adjudication after affording the petitioner an opportunity of hearing.

Ratio Decidendi: A cancellation order of GST registration cannot be sustained where the reply to the show cause notice is ignored and the order is passed without reasons and without observance of natural justice; such proceedings must be reconsidered de novo after hearing the affected party.

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