CWP- 12432 v. Union of India

CORAM : HON’BLE MR. JUSTICE DEEPAK SIBAL HON’BLE MR. JUSTICE DEEPAK SIBAL HON’BLE MS. JUSTICE LAPITA BANERJI HON’BLE MS. JUSTICE LAPITA BANERJI HON’BLE MS. JUSTICE LAPITA BANERJI Present : Mr. Mr. Tarang Goyal, Advocate, for the petitioner. for the petitioner. Mr. Gurinderjit Singh, Senior Panel Counsel and Mr. Gurinderjit Singh, Senior Panel Counsel and Mr. Gurinderjit Singh, Senior Panel Counsel and Mr. Mohit Garg, Mr. Mohit Garg, Advocate, for the respondent-UOI. for the respondent *** DEEPAK SIBAL, J. (Oral) DEEPAK SIBAL Through a show cause notice dated Through dated 14.11.2023, the petitioner was put to notice as to why its GST registration be not cancelled was put to notice as to why its registration be not cancelled to which no written response was filed by the petitioner. no written response filed by the petitioner. Thereafter, through order dated 27.12.2023 , the petitioner’s GST registration was retrospectively 27.12.2023, the petitioner’s GST registration was retrospectively cancelled with effect from 22.02.2020. The petitioner cancelled with effect from The petitioner then filed an application under Section 30 of the Central G application un Goods and Services Tax Act 2017, read with read with the relevant Rules, for revocation of revocation of cancellation of its GST registration but the same but the same was rejected on 21.03.

21.03.2024 against which the petitioner filed an appeal which was also dismissed on 08.04.2025. petitioner filed an appeal which was also dismissed on 08.04.202 petitioner filed an appeal which was also dismissed on 08.04.202

2. Retrospective cancellation of the Retrospective c the petitioner’s GST registration, rejection of its revocation application and the order of the appellate rejection of its revocation application and the order of the appellate rejection of its revocation application and the order of the appellate authority dated 08.04.2025 dismissing the petitioner’s appeal filed against authority dated 08.04.2025 dismissing the petitioner’s appeal filed against authority dated 08.04.2025 dismissing the petitioner’s appeal filed against the subject matter of challenge through this the aforesaid orders, are the subject matter of challenge through this the aforesaid orders, are petition. VANDANA 2026.05.01 11:40 I attest to the accuracy and integrity of this document CWP- 12432- -2026 (O&M)

3. of the show cause notice dated 14.11.2023 reveals A perusal of the show cause notice dated 14.11.2023 reveals A perusal though the show cause notice refers to supporting documents, none though the show cause notice refers to supporting documents that though the show cause notice refers to supporting documents only reason on the basis whereof the petitioner’s were attached, and the only reason on the basis whereof the petitioner’s were attached, GST registration was sought to be cancelled is GST registration was sought to be cancelled is discrepancies noticed during conduct of Physical Verification. Such show cause notice also did not put conduct of Physical Verification. Such show conduct of Physical Verification. Such show the petitioner to notice to notice that the GST registration was sought GST registration was sought to be cancelled retrospectively. retrospectively.

4. In the above factual position, the petitioner’s case is fully In the above factual position, the petitioner’s case i In the above factual position, the petitioner’s case i covered in its favour by a recent judgment of this Court dated 20.02.2026 in covered in its favour by a recent judgment of this Court dated 20.02.2026 in covered in its favour by a recent judgment of this Court dated 20.02.2026 in CWP No.16770-2024- ‘M/s Bansal Casting vs. Union of India and anothe CWP No.16770 M/s Bansal Casting vs. Union of India and another’ wherein it has been held as follows:- wherein it has been held as follows “13. Undoubtedly, there is a provision for retrospective “13. Undoubtedly, there is a provision for retrospective “13. Undoubtedly, there is a provision for retrospective cancellation of registration in terms of Section 29 of CGST cancellation of registration in terms of Section 29 of CGST cancellation of registration in terms of Section 29 of CGST Act, subject to the provisions as contained therein. It is Act, subject to the provisions as contained therein. It is Act, subject to the provisions as contained therein. It is apposite to note that while such power of retrospective apposite to note that while such power of retrospective apposite to note that while such power of retrospective cancellation of registra tion is definitely conferred, it is cancellation of registration is definitely conferred, it is apparent that such action can be taken only upon existence of apparent that such action can be taken only upon existence of apparent that such action can be taken only upon existence of specific contingencies and that an order under Section 29(2) of specific contingencies and that an order under Section 29(2) of specific contingencies and that an order under Section 29(2) of CGST Act must definitely reflect the reasons for such CGST Act must definitely reflect the reasons for such CGST Act must definitely reflect the reasons for such cancellation with retrospective effect. Furthermore, it is a cancellation with retrospective effect. cancellation with retrospective effect. basic, accepted and settled principle that concerned authority basic, accepted and settled principle that concerned authority basic, accepted and settled principle that concerned authority is enjoined upon to put the assessee to notice of the action is enjoined upon to put the assessee to notice of the action is enjoined upon to put the assessee to notice of the action which is intended to be taken and reasons or the premise on which is intended to be taken and reasons or the premise on which is intended to be taken and reasons or the premise on which such action is sought to be taken. Hon'ble th which such action is sought to be taken. Hon'ble the Supreme which such action is sought to be taken. Hon'ble th Court in ORYX Fisheries Pvt. Ltd. Vs. Union of India and Court in ORYX Fisheries Pvt. Ltd. Vs. Union of India and Court in ORYX Fisheries Pvt. Ltd. Vs. Union of India and others, 2010(13) SCC 427, has held as under:- others, 2010(13) SCC 427, has held as under: others, 2010(13) SCC 427, has held as under: "24. It is well settled that a quasi-judicial "24. It is well settled that a quasi authority, while acting in exercise of its statutory authority, while acting in exercise of its statutory power must act fairly and must act with an open power must act fairly and must act with an mind while initiating a show cause proceeding. A mind while initiating a show cause proceeding. A show cause proceeding is meant to give the show cause proceeding is meant to give the reasonable person person reasonable opportunity of making his objection against the opportunity of making his objection against the proposed charges indicated in the notice.” proposed charges indicated in the notice. proceeded proceeded against against a a Thus a show cause notice must contain the basic Thus a show cause notice must contain the basic 14. 14. grounds or premises on which action is sought to be taken. In grounds or premises on which action is sought to be taken. In grounds or premises on which action is sought to be taken. In the present matters, it was incumbent upon authorities to have the present matters, it was incumbent upon authorities to have the present matters, it was incumbent upon authorities to have put petitioners to notice about the proposal to take action put petitioners to notice about the proposal to take action put petitioners to notice about the proposal to take action spective effect and supply or at least against them with retrospective effect and supply or at least against them with retro VANDANA 2026.05.01 11:40 I attest to the accuracy and integrity of this document CWP- 12432- -2026 (O&M) mention the material on which reliance was placed. Moreover, mention the material on which reliance was placed. Moreover, mention the material on which reliance was placed. Moreover, once mentioned in show cause notice itself, that supporting once mentioned in show cause notice itself, that supporting once mentioned in show cause notice itself, that supporting documents are attached, such material should have been documents are attached, such material should have been documents are attached, such material should have been supplied to petitioners. supplied to petitioners. (emphasis supplied)

5. counsel for the respondents has not been able to Learned counsel for the respondents has not been able to Learned distinguish the applicability of the judgment in distinguish the applicability of the judgment in M/s Bansal Casting’s case to the petitioner’s case. (supra) to the petitioner’s case.

6. , we have no hesitation in setting aside the In light of the above, we have no hesitation in setting aside the In light of the above show cause notice dated 14.11.2023; the order d show cause notice dated 14.11 order dated 27.12.2023 through which the petitioner’s GST registration has been retrospectively cancelled; the which the petitioner’s GST registration has been which the petitioner’s GST registration has been order dated 21.03.2024 rejecting the petitioner’s order dated 21.03.2024 rejecting the petitioner’s revocation application and the appellate order dated order dated 08.04.2025. However, However, the respondents are granted liberty to proceed afresh , in accordance with law. proceed afresh against the petitioner, in accordance with law.

7. The petition is allowed in the above terms. The petition is allowed in the above terms. The petition is allowed in the above terms. DEEPAK SIBAL) (DEEPAK SIBAL JUDGE JUDGE (LAPITA BANERJI) (LAPITA BANERJI) JUDGE JUDGE , 2026 April 24, 2026 vandana ther speaking/reasoned : Whether speaking/reasoned : Whether reportable : Whether reportable Yes/No Yes/No VANDANA 2026.05.01 11:40 I attest to the accuracy and integrity of this document