Shri Hari Screens vs. State Of Punjab And Others
Held
The Court held that the controversy in the present petition was covered by the adjudication in the case of M/s Bansal Casting, S.K. Enterprises (Supra). Consequently, the impugned order dated 16.06.2026, cancelling the petitioner's GST registration, and the SCN dated 16.04.2026 were quashed. The reasoning was based on the principle that a retrospective cancellation of GST registration requires specific mention in the Show Cause Notice, a procedural requirement that was not met in this instance. The Court found that the SCN did not refer to any retrospective cancellation, making the subsequent order invalid. The writ petition was disposed of in terms of the law laid down in the cited precedent. The respondents were granted liberty to issue a fresh SCN and proceed in accordance with law.
Facts
The petitioner, Shri Hari Screens, is challenging the cancellation of its GST registration, which was ordered on 16.06.2026 with retrospective effect from 23.02.2018. A Show Cause Notice (SCN) for this cancellation was issued on 16.04.2026. The petitioner's primary contention is that the SCN did not mention any retrospective cancellation, rendering the subsequent order unsustainable. The revenue, represented by the State of Punjab and others, did not dispute the facts or the legal precedent cited by the petitioner.
Key Issues
1. Whether the cancellation of GST registration with retrospective effect is valid when the Show Cause Notice (SCN) issued for cancellation does not mention retrospective effect, thereby violating principles of natural justice and statutory requirements? (This issue turns on the interpretation of procedural fairness in tax administration under GST law). Petitioner's Contention: The petitioner argued that the impugned order of cancellation with retrospective effect cannot be sustained because the SCN dated 16.04.2026 did not indicate that the cancellation would be retrospective. They relied on the Division Bench judgment of the same High Court in M/s Bansal Casting, S.K. Enterprises vs. Union of India and Another and M/s Shree Ram Industries vs. State of Haryana and Another; 2026:PHHC:027747-DB. Revenue's Contention: The learned counsel for the revenue did not dispute the facts of the case or the law laid down in the cited precedent.
Sections Cited
None explicitly mentioned in the judgment text provided, beyond the general reference to GST law and procedural fairness.
AI-generated summary — verify with the full judgment below
143 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ****
CWP-29175-2026 (O&M)
Date of Decision:09.09.2026 SHRI HARI SCREENS ....PETITIONER(S) VERSUS STATE OF PUNJAB AND OTHERS ….RESPONDENT(S) CORAM:- HON'BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE ROHIT KAPOOR Present: Mr. Tarang Goyal, Advocate for the petitioner. Mr. Saurabh Kapoor, Addl. AG, Punjab. ***** ASHWANI KUMAR MISHRA, CJ (Oral)
The petitioner’s GST registration has been cancelled vide order dated 16.06.2026 (Annexure P-5) with retrospective effect from 23.02.2018. Show Cause Notice (SCN) for cancellation of registration was issued to the petitioner on 16.04.2026 (Annexure P-3). The said cancellation of GST registration is challenged by way of this writ petition primarily on the ground that the SCN issued, pursuant to which impugned order was passed, does not make reference to any retrospective cancellation.
Learned counsel for the petitioner has placed reliance upon the Division Bench judgment of this Court in M/s Bansal Casting, S.K. Enterprises vs. Union of India and Anoth
The judgment continues below.
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