Ms Deepak Enterprises vs. State Of Punjab And Others
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The petitioner, M/s Deepak Enterprises, challenged the cancellation of its GST registration. The cancellation order, dated 23.06.2026, was made retrospective from 31.03.2024. A Show Cause Notice (SCN) for cancellation was issued on 09.06.2026. The petitioner argued that the SCN did not mention retrospective cancellation, rendering the subsequent order unsustainable. The revenue did not dispute the facts or the relevant legal precedent.
Held
The Court held that the controversy was covered by the adjudication in M/s Bansal Casting, S.K. Enterprises (Supra). Consequently, the impugned order dated 23.06.2026 cancelling the GST registration and the SCN dated 09.06.2026 were quashed. The Court reasoned that the lack of mention of retrospective cancellation in the SCN made the retrospective cancellation order invalid. The ratio decidendi is that a retrospective cancellation of GST registration requires a clear proposal for such retrospective effect in the Show Cause Notice. The operative direction was to quash the impugned order and SCN. Liberty was reserved for the respondents to issue a fresh SCN and proceed in accordance with law.
Key Issues
1. Whether the cancellation of GST registration with retrospective effect is valid when the Show Cause Notice (SCN) issued did not propose retrospective cancellation, as per Section 29 of the Central Goods and Services Tax Act, 2017 (CGST Act) and relevant rules? Petitioner's Contention: The petitioner argued that the impugned order of cancellation, made retrospective from 31.03.2024, was unsustainable because the SCN dated 09.06.2026 did not indicate any intention to cancel the registration retrospectively. They relied on the Division Bench judgment of this 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 by the Co-ordinate Bench in the cited precedent.
Sections Cited
Section 29
AI-generated summary — verify with the full judgment below
149 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ****
CWP-28226-2026 (O&M)
Date of Decision:02.09.2026 M/S DEEPAK ENTERPRISES
....PETITIONER(S) VERSUS STATE OF PUNJAB AND ANR.
….RESPONDENT(S) CORAM:- HON'BLE THE ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE YASHVIR SINGH RATHOR Present: Mr. Peyush Pruthi, Advocate for the petitioner. Mr. Saurabh Kapoor, Addl. AG, Punjab. ***** ASHWANI KUMAR MISHRA, A.C.J. (Oral)
The petitioner’s GST registration has been cancelled vide order dated 23.06.2026 (Annexure P-4) with retrospective effect from 31.03.2024. Show Cause Notice (SCN) for cancellation of registration was issued to the petitioner on 09.06.2026 (Annexure P-2). 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 Another and M/s Shree Ram Industries vs. State of Haryana and Another; 2026:PHHC:027747-DB to submit that in such circumstances, the impugned order cannot be sustained. RAHUL JOSHI 2026.09.03 14:40 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD
CWP-28226-2026 (O&M)
2
Learned counsel for the revenue does not dispute either the facts of the present case or the law laid down by the Co-ordinate Bench of this Court in M/s Bansal Casting, S.K. Enterprises (Supra).
Since, the controversy raised in the present petition is covered by the adjudication in M/s Bansal Casting, S.K. Enterprises (Supra), the impugned order dated 23.06.2026 (Annexure P-4) and SCN dated 09.06.2026 (Annexure P-2) are ordered to be quashed and the writ petition stands disposed of in terms of the law laid down in M/s Bansal Casting, S.K. Enterprises (Supra). However, liberty stands reserved to the respondents to issue a fresh SCN and proceed further in accordance with law.
Pending application, if any, stands disposed of accordingly. [ASHWANI KUMAR MISHRA] ACTING CHIEF JUSTICE [YASHVIR SINGH RATHOR]
JUDGE SEPTEMBER 02, 2026 Rahul Joshi
Whether Speaking/reasoned Yes/No 2. Whether Reportable Yes/No RAHUL JOSHI 2026.09.03 14:40 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.