GST Registration Cannot Be Cancelled Retrospectively Without Prior Notice in SCN: P&H HC

Jordan Enterprises Vs Union of India and Others (Punjab and Haryana high)

GST Registration Cannot Be Cancelled Retrospectively Without Prior Notice in SCN:  Punjab & Haryana High Court Reaffirms Principles of Natural Justice

Case Details

• Case Name: M/s Jordan Enterprises v. Union of India & Others
• Court: Punjab and Haryana High Court
• Date of Decision: 25 February 2026
• Relevant Provision: Central Goods and Services Tax Act, 2017– Section 29 (Cancellation of Registration)

Background of the Case

The petitioner, M/s Jordan Enterprises, was engaged in the trading of iron and steel materials and was duly registered under the CGST Act.

• A Show Cause Notice (SCN) dated 08.01.2024 was issued stating that discrepancies were noticed during physical verification of the premise.
• The petitioner contended that:
  • The SCN was never served properly.
  • No physical verification was conducted in accordance with the statutory procedure.
    • The verification report in Form GST REG-30 was not provided.
  • No supporting documents or material were supplied.

Despite this, the proper officer passed an order dated 19.01.2024 cancelling the GST registration retrospectively from 17.10.2023, through a cryptic and non-speaking order.

The petitioner challenged the order before the High Court.

Issues Before the Court

1. Whether GST registration can be cancelled with retrospective effect when such action was not proposed in the Show Cause Notice.

2. Whether a non-speaking cancellation order passed without reasons or supporting documents is legally sustainable.

Court’s Observations