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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 ex parte order dated 11.11.2024 passed in consequence of non-submission of reply to the show-cause notice dated 09.02.2023 should be set aside and the matter remitted for fresh consideration; (ii) Whether the earlier order cancelling the GST registration dated 11.03.2021 should be quashed and the GST registration restored subject to conditions.Issue (i): Whether the impugned ex parte order dated 11.11.2024 should be set aside and the matter remitted to the relevant authority for fresh consideration from the stage of submission of reply to the show-cause notice dated 09.02.2023.Analysis: The decision examines whether failure to file a reply due to bonafide reasons and unavoidable circumstances justified relief from an ex parte administrative determination. The legal framework applied involves principles of procedural fairness and natural justice requiring a reasonable opportunity to be heard before adverse administrative action is finally recorded. Where an ex parte order results from non-participation attributable to satisfactory cause, relief by setting aside the impugned order and remitting for fresh consideration permits the authority to decide afresh after affording the affected party an opportunity to submit replies and documents. The authority on remittal is directed to provide sufficient and reasonable opportunity and to proceed in accordance with law when reconsidering the matter.Conclusion: The impugned ex parte order dated 11.11.2024 is set aside and the matter is remitted to the relevant authority for fresh consideration from the stage of submission of reply to the show-cause notice dated 09.02.2023, with directions to afford the affected party a sufficient and reasonable opportunity to be heard.Issue (ii): Whether the order cancelling the GST registration dated 11.03.2021 should be quashed and the registration reinstated subject to compliance.Analysis: The court considered whether cancellation of registration should stand where, in the circumstances, reinstatement with conditions is appropriate. The legal considerations include the remedial nature of reinstatement when cancellation has occurred without the affected party having had a full and fair opportunity to contest proceedings, and the authority's power on reconsideration to require compliance with statutory obligations. Conditional reinstatement is framed to enable the authority to secure statutory compliance (filing returns, payment of taxes, interest and penalty) within a specified timeframe before restoring the registration in the administrative records.Conclusion: The order cancelling the GST registration dated 11.03.2021 is quashed and the registration is to be reinstated/ restored within the period directed, subject to the affected party filing returns and paying up-to-date tax together with interest and penalty within the stipulated period.Final Conclusion: The overall legal effect is that the ex parte administrative order is set aside, the matter is remitted for fresh administrative adjudication with mandated opportunity to be heard, and the prior cancellation of registration is quashed with conditional reinstatement ordered to facilitate compliance and administrative resolution.Ratio Decidendi: Where an administrative adverse order is taken ex parte due to non-submission of replies attributable to bonafide reasons, principles of natural justice require setting aside the order and remitting the matter for fresh consideration with a direction to afford a sufficient opportunity to be heard; reinstatement of registration may be ordered subject to timely compliance with statutory filing and payment obligations.
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