GST registration cancellation for procedural default can be set aside where compliance is undertaken and restoration is allowed on conditions.

Cancellation of GST registration for failure to add bank account details on the portal was held fit for writ interference, and the adverse cancellation and appellate orders were set aside. The record showed issuance of a show-cause notice and cancellation order, while the objection of no hearing was not accepted as a basis to sustain the challenge. The matter was remitted for possible revocation of registration after the dealer uploads the bank details and complies with statutory requirements, with costs imposed to secure formal compliance and revenue interests.

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Issues: Whether the cancellation of GST registration and the appellate order rejecting the challenge thereto warranted interference in writ jurisdiction; and whether the petitioner should be permitted to restore the registration on compliance with the statutory requirements and payment of costs.

Issue (i): Whether the cancellation of GST registration and the appellate order rejecting the challenge thereto warranted interference in writ jurisdiction.

Analysis: The registration was cancelled for non-addition of bank account details on the GST portal. The record showed issuance of a show-cause notice and subsequent cancellation order, followed by dismissal of the appeal on the ground of delay. In these circumstances, the objection based on absence of opportunity of hearing was not accepted as a ground for sustaining the challenge.

Conclusion: Interference was warranted and the cancellation order as well as the appellate order were set aside.

Issue (ii): Whether the petitioner should be permitted to restore the registration on compliance with the statutory requirements and payment of costs.

Analysis: The petitioner expressed willingness to regularise the default, add the bank details on the GST portal, and resume business in the tax regime. The Court found it appropriate, in the interest of revenue and formal compliance, to allow restoration subject to fulfilment of the procedural requirement and payment of costs.

Conclusion: The petitioner was directed to upload the bank details, after which the authority was to consider revocation of registration, and costs of Rs. 50,000/- were imposed.

Final Conclusion: The petition succeeded, the adverse orders were annulled, and the matter was left to proceed towards possible revocation of registration upon compliance by the petitioner.

Ratio Decidendi: In a case of cancellation of GST registration for procedural default, writ relief may be granted to facilitate restoration where the dealer undertakes compliance, the departmental orders are set aside, and the interest of revenue is better served by bringing the dealer back into the regular tax stream.

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