Proportionality in GST registration cancellation requires an opportunity to file pending returns and pay statutory dues before restoration.

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Full Text of the Document

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....Proportionality requires that GST registration cancelled solely for non-filing of returns be restored where no tax-evasion allegation exists and cancellation would hinder revenue recovery. As final tax liability can be determined only after returns are filed, the taxpayer must be given an opportunity to regularise the default by filing all pending returns and paying consequential tax, interest, fine and penalty. The cancellation was conditionally set aside, with restoration directed upon timely compliance; otherwise, the writ petition would stand automatically dismissed.....