GST registration cancellation and revocation require prior opportunity to be heard; restoration warranted when liabilities are discharged.

Cancellation and revocation of GST registration under statutory procedure require adherence to the proviso mandating an opportunity of being heard; failure to afford that opportunity renders the cancellation void ab initio. Authorities retain power to revoke cancellations under the prescribed rule, but must exercise it in accordance with Section 30 and Rule 23 and the facts of the case. Where tax liabilities are fully discharged and no dues remain, the registrant is entitled to restoration of registration; refusal to revoke in such circumstances breaches the statutory scheme and warrants grant of relief to restore registration.

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Issues: Whether the petitioner is entitled to restoration/revocation of cancellation of GST registration under Section 30 of the CGST Act, 2017 read with Rule 23 of the CGST Rules, 2017, where all outstanding tax liabilities have been discharged.

Analysis: The Court examined Chapter VI of the CGST Act, specifically Section 29 (cancellation or suspension of registration), Section 30 (revocation of cancellation of registration) and Rule 23 of the CGST Rules, 2017 governing applications for revocation. The provisions require that revocation may be granted subject to prescribed conditions and that applications be decided after giving an opportunity of being heard; Rule 23 prescribes timelines, conditions for filing revocation applications and obligations to furnish returns and pay dues. On the facts, the record showed the petitioner had paid all tax liabilities and the Revenue conceded no outstanding dues remained. The Court relied on consistent authorities holding that keeping registration cancelled despite discharge of dues is not in the interest of Revenue and that authorities are empowered and obliged to revoke cancellation where conditions are met.

Conclusion: The petitioner is entitled to revocation of cancellation and restoration of GST registration; the writ petition is allowed in favour of the assessee.

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