Procedure for GST registration suspension: restoration ordered and recovery actions stayed pending opportunity to be heard and reasoned order.

Challenge to suspension of GST registration and to recovery/attachment actions turned on procedural law: the court treated the Revenue's withdrawal of suspension as basis to restore the registration and required that any further action on the show cause notice follow statutory safeguards, afford the petitioner an opportunity to be heard and result in time bound adjudication; similarly, the court stayed the recovery notice and provisional attachment, directing the competent officer to verify records, grant a hearing and pass a reasoned order before any recovery or attachment proceeds.

---

---

Issues: (i) Whether the suspension of the petitioner's GST registration and its consequences were lawful and require restoration and/or hearing; (ii) Whether the recovery notice and provisional attachment could be acted upon without following lawful procedure and granting an opportunity of hearing.

Issue (i): Legality of suspension of registration and the appropriate remedial action.

Analysis: The Court considered the statements made by Revenue's representatives in court, including the withdrawal of the suspension and the representation that the registration would be restored and made operational. The Court required that any further action on the show cause notice be taken only after granting the petitioner an opportunity to present materials and after following the statutory and procedural safeguards under the applicable GST provisions.

Conclusion: The Court accepted the Revenue's statement withdrawing the suspension, directed restoration of the petitioner's registration forthwith, and ordered that the petitioner be granted a hearing on the show cause notice within specified timelines.

Issue (ii): Validity of the recovery notice and provisional attachment and requirement of procedure before taking recovery action.

Analysis: The Court noted the Revenue's concession that lawful procedure must be followed in relation to the recovery notice and any provisional attachment. The Court stayed action on the recovery notice and directed that the competent officer verify records, afford an opportunity of hearing, and pass an appropriate order in accordance with law before proceeding with any recovery.

Conclusion: The Court directed that the recovery notice shall not be acted upon and that any recovery or attachment proceedings shall proceed only after following due process and granting the petitioner an opportunity of hearing.

Final Conclusion: The petition is disposed of by accepting the Revenue's statement withdrawing the suspension, restoring the petitioner's registration, directing an opportunity of hearing and time-bound adjudication on the show cause notice, and restraining action on the recovery notice until lawful procedure is followed.

Ratio Decidendi: Where administrative action affects GST registration or recovery, the competent authority must follow the statutory procedure, afford the affected party an opportunity of hearing, and pass a reasoned order before suspension, provisional attachment or recovery is effected.

---