Judicial Corner : GST registration was cancelled and later DRC-01 issued without pre-intimation, and ex parte order passed without hearing, in view of assessee’s bona fide inability to reply one more opportunity was to be granted; impugned order was set aside and matter remanded for fresh reconsideration. (29.01.2026)

Daily Updates / By

Judicial Corner: 

GST registration was cancelled and later DRC-01 issued without pre-intimation, and ex parte order passed without hearing, in view of assessee’s bona fide inability to reply one more opportunity was to be granted; impugned order was set aside and matter remanded for fresh reconsideration { Indian Steel Traders vs. Principal Commissioner of Central Tax [2026] 182 taxmann.com 524 (Karnataka)}

Facts:

  • Assessee’s GST registration was cancelled by the department.
  • A show-cause notice was issued, but the assessee could not file a reply due to bona fide and unavoidable reasons.
  • An ex-parte order was passed without granting an effective opportunity of hearing.

Issue

Whether cancellation of GST registration and ex-parte order could be sustained when the assessee failed to reply due to bona fide inability.

Held

  • The High Court held that the ex-parte order violated principles of natural justice.
  • Since the assessee showed bona fide reasons for non-reply, the cancellation order could not be sustained.
  • The registration cancellation and ex-parte order were set aside.
  • The matter was remanded to the department for fresh adjudication, after granting the assessee an opportunity to file reply and be heard.