[Cites 5, Cited by 0]
Punjab-Haryana High Court
M/S Friend Enterprises vs Commissioner, Central Goods And ... on 18 April, 2026
Author: Deepak Sibal
Bench: Deepak Sibal
IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
Sr. No. 175 CWP-11574-2026
Date of decision : 18.04.2026
M/s Friend Enterprises ..... Petitioner
Versus
Commissioner, Central Goods and
Services Tax, Ludhiana and others ..... Respondents
CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL
HON'BLE MS. JUSTICE LAPITA BANERJI
Present : Mr. Mukul Singla, Advocate, for the petitioner.
Ms. Isha Janjua, Advocate, for
Mr. Ajay Kalra, Senior Standing Counsel-CBIC.
*****
DEEPAK SIBAL, J. (Oral)
1. Through show cause notice dated 30.06.2023, the petitioner was
put to notice as to why its GST registration be not cancelled, to which no
written response was filed by the petitioner. Thereafter, through order dated
12.07.2023, the petitioner's GST registration was cancelled w.e.f. 16.08.2020.
The petitioner then filed an application under Section 30 of the Central Goods
and Services Tax Act, 2017 seeking therein revocation of cancellation of its
GST registration which was rejected on 13.09.2023. The petitioner's
statutory appeal filed against the retrospective cancellation of its GST
registration was also dismissed by the appellate authority through order dated
24.06.2024. Retrospective cancellation of the petitioner's GST registration is
the subject matter of challenge through this petition.
2. A perusal of the show cause notice dated 30.06.2023 reveals that
the only reason on the basis whereof the petitioner's GST registration was
SHAMSHER SINGH
2026.04.20 18:24
I attest to the accuracy and integrity of this
document
Punjab and haryana high court,
chandigarh
CWP-11574-2026 [2]
sought to be cancelled is "All India Special Drive against Fake Registration".
The said show cause notice also does not put the petitioner to notice that its
GST registration is sought to be cancelled retrospectively.
3. In the light of the above factual position, the petitioner's case is
fully covered in its favour by a recent Division Bench judgment of this Court
dated 20.02.2026 in CWP-16770-2024-M/s Bansal Casting vs. Union of India
and another, wherein it has been held as follows: -
13. Undoubtedly, there is a provision for retrospective cancellation of
registration in terms of Section 29 of CGST Act, subject to the provisions as
contained therein. It is apposite to note that while such power of
Undoubtedly, there is a provision for retrospective cancellation
retrospective cancellation of registration is definitely conferred, it is
apparent that such action can be taken only upon existence of specific
contingencies and that an order under Section 29(2) of CGST Act must
definitely reflect the reasons for such cancellation with retrospective effect.
Furthermore, it is a basic, accepted and settled principle that concerned
authority is enjoined upon to put the assessee to notice of the action which
is intended to be taken and reasons or the premise on which such action is
sought to be taken. Hon'ble the Supreme Court in ORYX Fisheries Pvt. Ltd.
Vs. Union of India and others, 2010(13) SCC 427, has held as under:-
"24. It is well settled that a quasi-judicial authority, while
acting in exercise of its statutory power must act fairly and
must act with an open mind while initiating a show cause
proceeding. A show cause proceeding is meant to give the
person proceeded against a reasonable opportunity of
making his objection against the proposed charges indicated
in the notice."
14. Thus a show cause notice must contain the basic grounds or premises
on which action is sought to be taken. In the present matters, it was
incumbent upon authorities to have put petitioners to notice about the
proposal to take action against them with retrospective effect and supply or
at least mention the material on which reliance was placed. Moreover, once
mentioned in show cause notice itself that supporting documents are
attached, such material should have been supplied to petitioners."
4. Learned counsel for the respondents has not been able to
distinguish the applicability of M/s Bansal Casting's case (supra) to the
petitioner's case.
SHAMSHER SINGH
2026.04.20 18:24
I attest to the accuracy and integrity of this
document
Punjab and haryana high court,
chandigarh
CWP-11574-2026 [3]
5. In the light of the above, we unhesitantly set aside the show
cause notice dated 30.06.2023; order dated 12.07.2023 retrospectively
cancelling the petitioner's GST registration; order dated 13.09.2023 rejecting
the petitioner's revocation application and the order dated 24.06.2024 through
which the petitioner's appeal, filed against the retrospective cancellation of its
GST registration was dismissed by the appellate authority. However, the
respondents are granted liberty to proceed afresh against the petitioner with
regard to retrospective cancellation of its GST registration, in accordance with
law.
6. The petition is allowed in the above terms.
[DEEPAK SIBAL]
JUDGE
18.04.2026 [LAPITA BANERJI]
shamsher JUDGE
Whether speaking/reasoned : Yes / No
Whether reportable : Yes / No
SHAMSHER SINGH
2026.04.20 18:24
I attest to the accuracy and integrity of this
document
Punjab and haryana high court,
chandigarh
