GST registration cancellation for non-filing was set aside, with restoration made conditional on return filing and statutory compliance.

GST registration cancellation for non-filing of returns was interfered with where the order was passed without adequate procedural fairness, including an effective hearing and reasoned consideration of the reply. The High Court followed the settled approach used in similar matters and set aside the cancellation while requiring the dealer to regularise compliance by filing pending returns and discharging statutory tax, penalty, interest, and late fee liabilities within the stipulated time. Relief was therefore moulded to restore registration subject to strict compliance with the directed GST obligations.

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Issues: (i) Whether the cancellation of GST registration for non-filing of returns could be sustained in the absence of an effective opportunity of hearing and a reasoned consideration of the reply, and what consequential directions were required.

Analysis: The registration had been cancelled for non-submission of returns under the GST framework. The petitioner had not sought revocation within the prescribed time, but the dispute was treated as covered by the settled approach adopted in earlier similar matters. In that approach, cancellation orders passed without adequate procedural fairness were interfered with, while the dealer was required to regularise compliance by filing pending returns and clearing statutory dues. The Court accordingly moulded relief by setting aside the cancellation and issuing consequential directions for compliance, including filing of returns within a stipulated period and payment of tax, penalty, interest, and late fees.

Conclusion: The cancellation of registration was set aside, and relief was granted to restore the registration subject to compliance with the directed statutory obligations, resulting in partial relief in favour of the assessee.

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