Ms Sudip Enterprises Through Its Proprietor vs. Union Of INDIA And Others
Original PDF →Facts
The petitioner, M/s Sudip Enterprises, challenged the cancellation of its GST registration. The cancellation order, dated 20.03.2026, was made effective retrospectively from 09.07.2025. A Show Cause Notice (SCN) for this cancellation was issued on 24.02.2026. The petitioner's primary contention was that the SCN did not mention any retrospective cancellation, making the subsequent order unsustainable. The revenue did not dispute the facts or the legal precedent cited by the petitioner.
Held
The Court held that the controversy in the present petition was covered by the adjudication in M/s Bansal Casting, S.K. Enterprises (Supra). Consequently, the impugned order dated 20.03.2026, cancelling the petitioner's GST registration, and the SCN dated 24.02.2026 were quashed. The Court's reasoning was based on the precedent that a retrospective cancellation without prior intimation in the SCN is not sustainable. The ratio decidendi is that procedural fairness requires the SCN to reflect the intended nature of the cancellation, including its retrospective effect, to allow the assessee an opportunity to respond. The operative direction was to quash the impugned order and SCN, disposing of the writ petition. Liberty was granted to 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 for cancellation does not mention retrospective cancellation, as per the provisions of the CGST Act, 2017? The petitioner argued that the impugned order of cancellation, made retrospective from 09.07.2025, is unsustainable because the SCN dated 24.02.2026 did not indicate any intention to cancel the registration retrospectively. The petitioner 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. The revenue, represented by the Senior Standing Counsel, did not dispute the facts of the case or the legal position established in the cited precedent.
Sections Cited
CGST Act, 2017
AI-generated summary — verify with the full judgment below
148 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ****
CWP-26484-2026 (O&M)
Date of Decision:20.08.2026 M/S SUDIP ENTERPRISES ....PETITIONER(S) VERSUS UNION OF INDIA AND OTHERS ….RESPONDENT(S) CORAM:- HON'BLE THE ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE ROHIT KAPOOR Present: Mr. Armaan Cajla, Advocate and Mr. Rakesh Cajla, Advocate for the petitioner. Mr. Naman Jain, Senior Standing Counsel for the respondent(s). ***** ASHWANI KUMAR MISHRA, A.C.J. (Oral)
The petitioner’s GST registration has been cancelled vide order dated 20.03.2026 (Annexure P-3) with retrospective effect from 09.07.2025. Show Cause Notice (SCN) for cancellation of registration was issued to the petitioner on 24.02.2026 (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 RAHUL JOSHI 2026.08.24 12:40 I attest to the accuracy and integrity of this document Punjab & Haryana High Court, CHD
CWP-26484-2026 (O&M)
2 sustained.
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 20.03.2026 (Annexure P-3) and SCN dated 24.02.2026 (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 [ROHIT KAPOOR]
JUDGE AUGUST 20, 2026 Rahul Joshi
Whether Speaking/reasoned Yes/No 2. Whether Reportable Yes/No RAHUL JOSHI 2026.08.24 12:40 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.