M S Enterprises Vs Commissioner (Punjab And Haryana High Court)
The Punjab and Haryana High Court considered a writ petition challenging an order dated 10.07.2025 cancelling the petitioner’s GST registration with retrospective effect from 01.05.2023. The petitioner contended that the Show Cause Notice (SCN) issued before passing the cancellation order did not contain any proposal for retrospective cancellation of registration.
The petitioner relied upon the Division Bench judgment in M/s Bonsai Casting, S.K. Enterprises vs. Union of India and Another and M/s Shree Ram Industries vs. State of Haryana and Another, submitting that retrospective cancellation could not be sustained where the SCN did not propose such action.
The Revenue did not dispute either the factual position or the law laid down in the cited Division Bench judgment.
The High Court observed that the controversy was fully covered by the earlier Division Bench decision. Accordingly, it quashed the order dated 10.07.2025 cancelling the GST registration with retrospective effect. The Court, however, reserved liberty to the respondents to issue a fresh Show Cause Notice and proceed further in accordance with law. The writ petition and all pending applications were disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. The petitioner’s GST registration has been cancelled vide orders dated 10.07.2025 (Annexure P-3) with retrospective effect from 01.05.2023. The said cancellation of GST registration is challenged by way of this writ petition primarily on the ground that the Show Cause Notice (SCN) issued, pursuant to which impugned order was passed, does not make reference to any retrospective cancellation.
2. Learned counsel for the petitioner has placed reliance upon the Division Bench judgment of this Court in M/s Bonsai Casting, S.K. Enterprises vs. Union of India and Another and M/s Shree Ram Industries vs. State of Haryana and Another; 2026:PHHC:027747-DB to submit that in such circumstances, the impugned order cannot be sustained.
3. Learned counsel for the revenue 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).
4. Since, the controversy raised in the present petition is covered by the adjudication in M/s Bansal Casting, S.K. Enterprises (Supra), the impugned order dated 10.07.2025 (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 SCN and proceed further in accordance with law.
5. Pending application, if any, stands disposed of accordingly.
