BharatTaxGST

M/S Prime Steel Corporation vs. Union Of INDIA And Others

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CWP/11561/2026HC Punjab and HaryanaGSTCNR PHHC01062473202621 April 2026Bench: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE LAPITA BANERJI3 pages

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Cause title — parties, addresses and appearances
IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ( Sr. No. 146 ) CWP No. 11561 of 2026 Date of decision: 21.04.2026 M/s Prime Steel Corporation .....Petitioner Versus Union of India and others .....Respondents CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present : Mr. J.S. Bedi, Advocate for the petitioner. Mr. Ajay Kalra, Senior Standing Counsel with Ms. Isha Janjua, Advocate for the respondent(s)-CBIC. * * * DEEPAK SIBAL, J. (Oral) (1) Through this petition, the petitioner challenges show cause notice dated 03.12.2025 (Annexure P-2), served upon the petitioner for cancellation of its GST registration. (2) Learned counsel for the parties have been heard and with their able assistance the records of the case have been perused. (3) The impugned show cause notice dated 03.12.2025 is reproduced below for ready reference:- “FORM GST REG-17 [See Rule 22(1)] Reference No.: ZA0312250055253 Date: 03/12/2025 To Registration Number (GSTIN/UIN): 03PXKPS1587Q1Z8 LOVEPREET SINGH SUNIL YADAV 2026.04.23 13:53 I attest to the accuracy and

authenticity of this order. Chandigarh

CWP No. 11561 of 2026 [2]

SHOP NO 05, CHOTA KHANNA, GROUND FLOOR, PRIME STEEL CORPORATION, NEAR SATI MATA MANDIR, CHOTA KHANNA ROAD, Khanna, Ludhiana, Punjab, 141401

Show Cause Notice for Cancellation of Registration

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

1.

Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts

2.

Rule 21(b)-person issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder

3.

Rule 21(e)-person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder

4.

Rule 21 (g)-person violates the provision of rule 86B

Remarks: The verification of the records of the TP was conducted and found that its suppliers are suo moto cancelled by the department. Also on checking the vehicle movement of the EWBs, it was noticed that there was no vehicle movement from Delhi to Punjab.

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

You are hereby directed to appear before the undersigned authority on 10/12/2025 at 11:00. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Please note that your registration stands suspended with effect from 15/04/2025. Kindly refer the supportive document attached for case specific details.

Place: CBIC

Date: 03/12/2025

VAISHALI CHANDHOK

Superintendent

RANGE-I”

(4)

A perusal of the afore show cause notice reveals that the same does not contain any details on the basis whereof the petitioner's GST registration is sought to be cancelled. Except reference to certain provisions of law, no facts are found mentioned therein. Though it finds mentioned therein that supportive documents are attached but admittedly, no documents were attached to the afore quoted show cause notice. SUNIL YADAV 2026.04.23 13:53 I attest to the accuracy and authenticity of this order. Chandigarh

CWP No. 11561 of 2026 [3]

(5)

In the light of the above, we find that impugned show cause notice grossly violates the principles of natural justice and does not serve the object behind its issuance. Therefore, we have no hesitation in setting aside the impugned show cause notice dated 03.12.2025. However, liberty is granted to the State to proceed against the petitioner for cancellation of its GST registration, in accordance with law. (6)

The petition is allowed in above terms.

( DEEPAK SIBAL )

JUDGE

21.04.

2026

( LAPITA BANERJI ) sunil yadav

JUDGE

Whether speaking/reasoned : Yes / No Whether reportable : Yes / No SUNIL YADAV 2026.04.23 13:53 I attest to the accuracy and authenticity of this order. Chandigarh

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.