Jai Durga Industries vs. Union Of INDIA And Another
Original PDF →Facts
The petitioner, Jai Durga Industries, challenged the cancellation of its GST registration, which was made effective retrospectively from 03.11.2017, via an order dated 31.07.2026. The petitioner argued that the show cause notice preceding this order did not mention any retrospective cancellation. The petitioner relied on a Division Bench judgment of the Punjab and Haryana High Court in M/s Bansal Casting, S.K. Enterprises Vs. Union of India and Another and M/s Shree Ram Industries V/s State of Haryana and Another; 2026:PHHC:027747-DB. The State counsel did not dispute the facts or the legal precedent cited by the petitioner.
Held
The Court held that the controversy in the present writ petition was covered by the adjudication in M/s Bansal Casting, S.K. Enterprises (Supra). Consequently, the impugned order dated 31.07.2026, cancelling the petitioner's GST registration retrospectively, was quashed. The Court reasoned that the show cause notice did not mention retrospective cancellation, and the precedent established that such an order could not be sustained. The writ petition was disposed of in terms of the law laid down in M/s Bansal Casting, S.K. Enterprises (Supra). The respondents were granted liberty to issue a fresh show cause notice and proceed in accordance with law. No specific amount in dispute was mentioned.
Key Issues
1. Whether the cancellation of GST registration with retrospective effect, when the show cause notice did not indicate such retrospective cancellation, is sustainable in law, particularly in light of the decision in M/s Bansal Casting, S.K. Enterprises (Supra)? Petitioner's argument: The petitioner contended that the retrospective cancellation of GST registration was invalid because the show cause notice did not inform them of this possibility. They relied on the Division Bench judgment in M/s Bansal Casting, S.K. Enterprises (Supra) which, according to the petitioner, supports their contention that such an order cannot be sustained. Revenue's argument: The learned State counsel did not dispute the facts of the case or the law laid down in the precedent cited by the petitioner.
AI-generated summary — verify with the full judgment below
121 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
CWP-25676-2026 (O&M) Date of Decision: 14th August, 2026. JAI DURGA INDUSTRIES
.…...Petitioner(s) V/s
UNION OF INDIA AND ANOTHER
......Respondent(s)
CORAM: HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE ROHIT KAPOOR
Present Mr. J.S. Bedi, Advocate, for the petitioner.
Mr. Sourabh Goel, Senior Standing Counsel, UOI, with Ms. Himanshi Gautam, Advocate, and Ms. Drishti Saraf, Advocate for the respondent-UOI.
Mr. Saurabh Kapoor, Addl. A.G., Punjab.
****
ASHWANI KUMAR MISHRA, A.C.J. (Oral)
The petitioner’s GST registration has been cancelled vide order dated 31.07.2026 (Annexure P-3) with retrospective effect from 03.11.2017. The said cancellation of GST registration is challenged by way of this Writ Petition primarily on the ground that the show cause notice 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 judgement of this Court in M/s Bansal Casting, S.K. Enterprises Vs. Union of India and Another and M/s Shree Ram Industries V/s State of Haryana and Another; 2026:PHHC:027747-DB to submit that in such circumstances, the impugned order cannot be sustained. SURESH KUMAR 2026.08.18 10:21 I attest to the accuracy and integrity of this document
CWP-25676-2026 (O&M)
Learned State counsel 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 31.07.2026 (Annexure P-3) 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.
Pending application, if any, stands disposed of accordingly.
[ASHWANI KUMAR MISHRA] ACTING CHIEF JUSTICE
[ROHIT KAPOOR] JUDGE
August 14, 2026 Ess Kay
Whether speaking / reasoned :
Yes / No Whether Reportable
:
Yes / No SURESH KUMAR 2026.08.18 10:21 I attest to the accuracy and integrity of this document
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.