CWP-39022-2025 v. Commissioner, Central Goods and Services Tax & Anr.

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. Mukul Singla, Advocate, for the petitioner. for the petitioner. Mr. Ajay Kalra, Senior Standing Counsel Mr. Ajay Kalra, Senior Standing Counsel Mr. Ajay Kalra, Senior Standing Counsel for the respondent(s) for the respondent(s)-CBIC (appeared through VC) (appeared through VC) Mr. Sourabh Goel, Sr. Standing Counsel Mr. Sourabh Goel, Sr. Standing Counsel Mr. Sourabh Goel, Sr. Standing Counsel for the respondent or the respondent-UOI. *** DEEPAK SIBAL, J. (Oral) DEEPAK SIBAL Through a show cause notice dated 01.02.2024, the petitioner Through a show cause notice dated Through a show cause notice dated put to notice as to why its GST registration be not cancelled to which a put to notice as to why its GST registration be not cancelled to was put to notice as to why its GST registration be not cancelled to written response was filed by the petitioner. Thereafter, through order dated written response was filed by the petitioner. Thereafter, through order dated written response was filed by the petitioner. Thereafter, through order dated , the petitioner’s GST registration was retrospectively cancelled 07.06.2024, the petitioner’s GST registration was retrospectively cancelled , the petitioner’s GST registration was retrospectively cancelled The petitioner then filed an application under with effect from 11.07.2023. The petitioner then filed an application under with effect from Section 30 of the Central Goods and Services Tax Act 2017, read with the Section 30 of the Central Goods and Services Tax Act 2017, read with the Section 30 of the Central Goods and Services Tax Act 2017, read with the relevant Rules, for revocation of cancellation of its GST registration but the relevant Rules, for revocation of cancellation of its GST relevant Rules, for revocation of cancellation of its GST same was rejected on 01.07.2024 against which the petitio same was rejected on against which the petitioner filed an appeal which was also dismissed on 08.04.2025. appeal which was also dismissed on 08.04.2025. appeal which was also dismissed on 08.04.2025.

2. e petitioner’s GST registration; Retrospective cancellation of the petitioner’s GST registration; Retrospective cancellation of th 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 authority dated 08.04.2025 dismissing the petitioner’s appeal, filed against VANDANA 2026.05.19 09:12 I attest to the accuracy and integrity of this document CWP-39022-2025 2025 (O&M) the aforesaid orders, are the subject matter of challenge through this the aforesaid orders, are the subject matter of challenge through this the aforesaid orders, are the subject matter of challenge through this petition.

3. A perusal of the show cause notice dated 01.02.2024 reveals A perusal of the show cause notice dated A perusal of the show cause notice dated refers to supporting documents but none that though the show cause notice refers to supporting documents but none that though the show cause notice were attached. Such show cause notice also did not put t were attached. Such show cause notice also did not put the petitioner to GST registration was sought to be cancelled retrospectively. notice that its GST registration was sought to be cancelled retrospectively. GST registration was sought to be cancelled retrospectively.

4. In the above factual position, the petitioner’s case is fully In the above factual position, the petitioner’s case is fully In the above factual position, the petitioner’s case is fully 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. Und oubtedly, 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 registration is cancellation of registration is definitely conferred, it is cancellation of registration 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. Furtherm cancellation with retrospective effect. Furtherm 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 the Suprem which such action is sought to be taken. Hon'ble the Supreme which such action is sought to be taken. Hon'ble the Suprem 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 "24. It is well settled that a quasi-judicial 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 open d 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 against them with retro spective effect and supply or at least against them with retrospective effect and supply or at least 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 VANDANA 2026.05.19 09:12 I attest to the accuracy and integrity of this document CWP-39022-2025 2025 (O&M) 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 M/s Bansal Casting’s case distinguish the applicability of the judgment in distinguish the applicability of the judgment in to the petitioner’s case. (supra) to the petitioner’s case.

6. In light of the above, 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, we have no hesitation in setting aside the show cause notice dated 01.02.2024 (Annexure P show cause notice dated

01.02.2024 (Annexure P-1); the order dated through which the petitioner’s GST registration 07.06.2024 (Annexure P-3) through which the petitioner’s GST registration 07.06.2024 (Annexure P has been retrospectively cancelled; the order dated has been retrospectively cancelled; the order da ted 01.07.2024 (Annexure P-7) rejecting the petitioner’s revocation application and the appellate order dated rejecting the petitioner’s revocation application and the appellate order dated rejecting the petitioner’s revocation application and the appellate order dated

08.04.2025 (Annexure P . However, the respondents are granted liberty to (Annexure P-9). However, the respondents are granted liberty to proceed afresh against the petitioner, in accordance with law. proceed afresh against the petitioner, in accordance with law. proceed afresh against the petitioner, in accordance with law.

7. petition is allowed in the above terms. The petition is allowed in the above terms. The (DEEPAK SIBAL DEEPAK SIBAL) JUDGE JUDGE (LAPITA BANERJI) (LAPITA BANERJI) JUDGE JUDGE , 2026 May 12, 2026 vandana ther speaking/reasoned : Whether speaking/reasoned : Whether reportable : Whether reportable Yes/No Yes/No VANDANA 2026.05.19 09:12 I attest to the accuracy and integrity of this document