M/s Bansal Casting v. Union of India & Anr., M/s Shree Ram Industries v. State of Haryana & Anr., S.K. Enterprises v. Union of India & Ors. (Punjab & Haryana High Court)
The Punjab and Haryana High Court heard three connected writ petitions raising common questions concerning cancellation of GST registration under the Central Goods and Services Tax Act, 2017 (CGST Act) and Haryana Goods and Services Tax Act, 2017 (HGST Act). The primary issues were whether GST registration could be cancelled retrospectively when such action was not proposed in the show cause notices, whether proceedings were vitiated due to non-supply of supporting documents referred to in the notices, and whether the cancellation orders were invalid for being cryptic and non-speaking.
In the first case, a show cause notice dated 09.08.2023 stated that discrepancies were noticed during physical verification, but although the notice referred to supporting documents, none were supplied. The department later stated that a physical verification report indicated the premises were found closed despite the business board being present. This report was not provided to the petitioner. The registration was cancelled by order dated 11.01.2024.
In the second petition, a show cause notice dated 30.06.2025 alleged that during inspection the firm was not found working. The order cancelling registration dated 03.07.2025 made the cancellation effective retrospectively from 25.10.2024. The petitioner had earlier applied for voluntary cancellation on 18.06.2025, which was rejected after inspection found the premises closed. The department claimed that the firm may have been issuing invoices without actual supply of goods or services.
