Ms Semm Steels vs. State Of Punjab And Another
Original PDF →Facts
M/s Semm Steels (the petitioner) filed a writ petition challenging a show cause notice dated April 9, 2026, issued by the Excise and Taxation Officer-cum-State Tax Officer, Fatehgarh Sahib. The notice proposed cancellation of the petitioner's GST registration under Rule 21(e) of the CGST Act, alleging that the petitioner availed Input Tax Credit (ITC) in violation of Section 16 of the Act or the rules made thereunder. The notice also directed the petitioner to appear for a hearing on April 16, 2026, and warned that failure to reply or appear would result in an ex-parte decision. The petitioner contended that the show cause notice lacked factual basis and was issued without application of mind, violating principles of natural justice.
Held
The Court held that the impugned show cause notice dated April 9, 2026, was unsustainable. The Court found that a perusal of the notice revealed no factual basis for its issuance and that it appeared to have been authored without any application of mind. Consequently, the Court concluded that the notice violated the principles of natural justice and did not serve the object behind its issuance. Therefore, the show cause notice was set aside. However, the Court granted liberty to the respondents to proceed against the petitioner for cancellation of its GST registration in accordance with law, implying that a fresh, properly reasoned notice could be issued.
Key Issues
1. Whether the impugned show cause notice dated April 9, 2026, for cancellation of GST registration, issued to the petitioner, is sustainable in law, particularly in light of the principles of natural justice? Petitioner's arguments: The petitioner argued that the show cause notice was flawed as it lacked any factual basis and was issued without proper application of mind by the issuing authority. This failure to apply mind, according to the petitioner, violated the fundamental principles of natural justice, rendering the notice unsustainable. The petitioner relied on the content of the notice itself to demonstrate this lack of application of mind. Revenue's arguments: The judgment does not record any specific arguments made by the respondent revenue authority. The court's observation that the notice was authored without any application of mind implies that the revenue did not present a counter-argument to refute this specific contention.
Sections Cited
Rule 21(e), Section 16, Rule 22(1)
AI-generated summary — verify with the full judgment below
IN THE M/S SEMM S STATE OF PU CORAM : H
H Present : M
M
DEEPAK SIB
T petitioner for c
“F
Referenc To Registrat NAMNEE HOUSE MANDI G
Whereas that your 1. se Remarks You are h days from Sr. No.141
E HIGH COURT OF PUNJAB CHANDIGARH
CWP-1 Date of TEELS
Versus UNJAB AND ANOTHER HON’BLE MR. JUSTICE DEEPA HON’BLE MS. JUSTICE LAPITA Mr. Mohit Bassi, Advocate for the Mr. Saurabh Kapoor, Addl. A.G., P *** BAL, J. (Oral) The impugned show cause date cancellation of its GST registrati FORM GST REG-17 [See Rule 22(1)] e No.: ZA0304260143433
tion Number (GSTIN/UIN): 03NPWP ET SINGH NO.210, SECTOR-23A, M/S SEM GOVINDGARH, FATEHGARH SAH Show Cause Notice for Cance on the basis of information which h r registration is liable to be cancelled Rule 21(e)-person avails ITC in ection 16 of the Act or the rules made : hereby directed to furnish a reply to m the date of service of this notice. B AND HARYANA AT H 3403-2026 f Decision : 01.05.2026 …PETITIONER …RESPONDENTS AK SIBAL A BANERJI e petitioner. Punjab.
ed 09.04.2026, issued to the on reads as under:-
Date: 09/04/2026
WPS9113G1Z5
MM STEELS, TEHSIL-AMLOH, HIB, PUNJAB, 147301 ellation of Registration has come to my notice, it appears d for the following reasons: n violation of the provisions of e thereunder o the notice within seven working PRINCE SAINI 2026.05.05 08:43 I attest to the accuracy and integrity of this document
CWP-1
You are 16/04/20 If you fa persona h parte on Please n 06/08/20 Kindly re Place: Pu Date 09/0
A factual basis be cause notice
In notice violates behind its issua (Annexure P-1) proceed agains accordance with 4. Th
2026 Prince
Whether reportabl 3403-2026
hereby directed to appear before 26 at 11:00. il to furnish a reply within the stip hearing on the appointed dated and the basis of available records and o note that your registration stand 25. efer the supportive document attache unjab
/04/2026
A perusal of the afore quoted show ehind its issuance is found therei has been authored without n the light of the above, we find the principles of natural justice ance. Therefore, the impugned show ) is set aside. However, liberty is st the petitioner for cancellation h law.
he petition is allowed in the above
(DEEPA
J
(LAPIT
J e : Yes/No Whether Reasoned
-2- e the undersigned authority on pulated date or fail to appear for d time, the case will be decided ex n merits. ds suspended with effect from
ed for case specific details.
Jaspreet Singh Malhi Excise And Taxation Officer-cum-State Tax Officer
Fatehgarh Sahib- Ward No.5” w cause notice reveals that no in. It is apparent that the show any application of mind. that the impugned show cause and does not serve the object w cause notice dated 09.04.2026 s granted to the respondents to n of its GST registration, in
terms. AK SIBAL) JUDGE
TA BANERJI) JUDGE d: Yes/No
PRINCE SAINI 2026.05.05 08:43 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.