Natural justice requires a hearing before GST registration cancellation, with a chance to reply to the show cause notice.

GST registration cancellation cannot be sustained without an effective opportunity to respond to the show cause notice and a personal hearing. The Delhi HC held that, where the petitioner claimed lack of prior knowledge of the notice and non-supply of the inspection report, principles of natural justice required a chance to file a detailed reply with supporting documents before any final decision. The cancellation order was set aside, and the matter was remitted for fresh adjudication after hearing the petitioner.

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Issues: Whether the cancellation of the petitioner's GST registration could be sustained without affording an effective opportunity to file a reply to the show cause notice and without granting a personal hearing.

Analysis: The petitioner asserted that it had no prior knowledge of the show cause notice and the consequent cancellation until February 2025 and that the inspection report had not been furnished despite request. In these circumstances, the Court held that the petitioner ought to be given an opportunity to explain its position, file a detailed reply with supporting documents, and be heard before any final decision on the registration was taken.

Conclusion: The cancellation order was set aside, the petitioner was permitted to upload its reply and documents to the show cause notice, and the adjudicating authority was directed to grant a personal hearing and decide the matter afresh within the stipulated time.

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