GST registration cancellation requires effective hearing and reasoned decision before adverse action can be sustained.

Retrospective cancellation of GST registration could not be sustained where the affected person was not given an effective opportunity to reply to the show cause notice or be heard before the cancellation order. The Court noted that no reply had been considered and that the sole proprietor's death was explained, making a fresh opportunity to respond necessary. The impugned cancellation was set aside, and the matter was remitted for filing of a reply, personal hearing, and a fresh reasoned decision in accordance with due process.

---

---

Issues: Whether the retrospective cancellation of GST registration could be sustained when the petitioner was not given an opportunity to reply to the show cause notice and be heard before passing the cancellation order.

Analysis: The cancellation order was passed without considering any reply from the petitioner. The petitioner also explained that the sole proprietor had died and sought an opportunity to respond to the notice. In these circumstances, the order could not be sustained without affording the petitioner a chance to file a reply, obtain a personal hearing, and have the matter decided by a reasoned order.

Conclusion: The impugned cancellation order was set aside and the petitioner was permitted to file a reply to the show cause notice, followed by personal hearing and a fresh reasoned decision.

Final Conclusion: The writ petition succeeded to the extent of securing procedural relief against the cancellation order and a fresh adjudication of the show cause notice.

Ratio Decidendi: A cancellation of GST registration cannot be sustained where it is passed without affording the affected person an effective opportunity of reply and hearing, and the authority must decide the matter by a reasoned order after following due process.

---