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of <h1>GST registration cancellation after ex parte adjudication without hearing: assessee gets fresh chance to reply, order set aside</h1> An assessee challenged an ex parte GST adjudication and consequential cancellation of registration on the ground that the show-cause notice was issued ... Ex parte adjudication order passed - Without issuing any pre-intimation, issued a show-cause notice in Form DRC-01 - No opportunity of personal hearing - Cancellation of the GST Registration - HELD THAT:- Having regard to the specific assertion on the part of the petitioner that his inability and omission to submit reply to the show-cause notice and contest the proceedings was due to bonafide reasons, unavoidable circumstances and sufficient cause, It is deem it just and appropriate to adopt a justice oriented approach and provide one more opportunity to the petitioner by setting aside the impugned order at Annexure-D dated 11.11.2024 and remitting the matter back to respondent No.3 for reconsideration of the matter afresh in accordance with law from the stage of petitioner submitting reply to the impugned show-cause notice dated 09.02.2023. Insofar as the cancellation of the GST Registration of the petitioner is concerned, the submission made by the counsel for the petitioner is placed on record. The petition is hereby allowed. Issues: (i) Whether the impugned ex parte order dated 11.11.2024 (annulment/rejection based on non-reply to show-cause notice dated 09.02.2023) should be set aside and the matter remitted for fresh consideration; (ii) Whether the earlier order cancelling GST registration dated 11.03.2021 should be quashed and registration reinstated subject to conditions.Issue (i): Whether the impugned ex parte order dated 11.11.2024 should be set aside and the matter remitted for fresh consideration.Analysis: The petitioner asserted bonafide reasons and unavoidable circumstances for non-submission of reply to the show-cause notice dated 09.02.2023 and sought an opportunity to file reply/documents. Having regard to those assertions and the absence of opportunity of personal hearing before passing the impugned order, a justice-oriented exercise of judicial discretion permits setting aside an ex parte administrative order and remitting the matter for reconsideration so that statutory procedural fairness is observed and replies/documents can be considered afresh.Conclusion: The impugned order dated 11.11.2024 is set aside and the matter is remitted for fresh consideration from the stage of submission of reply to the notice dated 09.02.2023; this conclusion is in favour of the assessee.Issue (ii): Whether the cancellation of GST registration dated 11.03.2021 should be quashed and registration reinstated subject to conditions.Analysis: The petitioner undertook to file returns and pay up-to-date taxes if the cancellation order is set aside. Conditional reinstatement of registration coupled with directions to file returns and pay outstanding tax, interest and penalty within a specified period secures both the assessee's opportunity to comply and the revenue's interest in recovery, permitting quashment of the cancellation order in the special facts of the case.Conclusion: The cancellation order dated 11.03.2021 is quashed and GST registration is ordered to be reinstated subject to filing returns and payment of up-to-date tax, interest and penalty within the prescribed period; this conclusion is in favour of the assessee.Final Conclusion: Both the ex parte adjudicatory order is set aside with remittal for fresh consideration and the cancellation of registration is quashed with conditional reinstatement, resulting in relief to the assessee while preserving the revenue's right to recover dues through statutory compliance.Ratio Decidendi: Where an ex parte administrative order is passed without affording a party reasonable opportunity to reply and the party shows bonafide cause for non-participation, a court may set aside the order and remit the matter for fresh consideration; conditional reinstatement of registration is permissible where the party is directed to regularise returns and pay outstanding tax, interest and penalty within a specified time.
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