Surinder Trading Co vs. State Of Punjab And Others
Original PDF →Facts
The petitioner, Surinder Trading Co., challenges an order dated 17.02.2026, passed by the State of Punjab, which cancelled its GST registration with retrospective effect from 27.01.2025. The petitioner contends that the cancellation was based on a show cause notice that did not adequately address the retrospective nature of the cancellation. The petitioner relies on previous judgments of the High Court in similar matters. The revenue, represented by the State of Punjab, does not dispute the facts or the legal precedent cited by the petitioner.
Held
The Court held that the impugned order cancelling the petitioner's GST registration with retrospective effect was not sustainable. Following the precedent set by the High Court in M/s Bansal Casting, S.K. Enterprises and M/s Shree Ram Industries V/s State of Haryana and Another, the Court found that the show cause notice issued did not adequately address the retrospective nature of the cancellation, thus vitiating the order. The Court quashed the impugned order dated 17.02.2026. The ratio decidendi is that a retrospective cancellation of GST registration requires a show cause notice that specifically addresses and justifies the retrospective aspect, adhering to principles of natural justice. The respondents are granted liberty to issue a fresh show cause notice and proceed in accordance with law. No other issues were expressly left undecided.
Key Issues
1. Whether the cancellation of GST registration with retrospective effect, based on a show cause notice that did not specifically address this retrospective aspect, is legally sustainable? This issue turns on the principles of natural justice and the requirements of a valid show cause notice under GST law. The petitioner argues that the show cause notice was deficient as it failed to provide adequate grounds for retrospective cancellation, thus violating principles of natural justice. They rely on the High Court's judgments in M/s Bansal Casting, S.K. Enterprises, and M/s Shree Ram Industries V/s State of Haryana and Another. The revenue does not dispute the facts or the law laid down in the cited precedents.
Sections Cited
None explicitly mentioned in the provided text, but the context implies provisions related to GST registration cancellation and show cause notices.
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Cause title — parties, addresses and appearances
order The ition hich ctive the rises te of such RAJESH KUMAR 2026.08.21 11:28 I attest the accuracy and authenticity of this order/judgment.
CWP-22766-2026 (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 writ petition is covered by the adjudication in M/s Bansal Casting, S.K. Enterprises(Supra), the impugned order dated 17.02.2026 (Annexure P-4) is 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 show cause notice and proceed further in accordance with law.
All pending miscellaneous application(s), if any, shall also stand disposed of.
(ASHWANI KUMAR MISHRA)
ACTING CHIEF JUSTICE
(ROHIT KAPOOR)
JUDGE 20.08.2026 rajesh
Whether speaking/reasoned? : Yes/No 2. Whether reportable?
: Yes/No RAJESH KUMAR 2026.08.21 11:28 I attest the accuracy and authenticity of this order/judgment.
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.