A One Industries Vs Central Board of Indirect Taxes & Customs (Punjab and Haryana High Court)
The Punjab and Haryana High Court allowed the writ petition and set aside the show cause notice dated 21.01.2025 issued for cancellation of GST registration because the notice did not inform the petitioner that retrospective cancellation was proposed. Despite the absence of such disclosure in the notice, the authorities cancelled the petitioner’s GST registration retrospectively through an order dated 13.03.2025.
The Court held that the matter was fully covered by its earlier Division Bench judgment in M/s Bansal Casting vs. Union of India and another dated 20.02.2026. In that judgment, the Court had observed that although Section 29 of the CGST Act permits retrospective cancellation of registration, such power can be exercised only upon fulfillment of specified conditions and the order must clearly record reasons for retrospective cancellation.
The Court reiterated that principles of natural justice require that an assessee must be put to notice regarding the precise action proposed against it and the basis for such action. Relying on the Supreme Court judgment in Oryx Fisheries Pvt. Ltd. vs. Union of India, the Court emphasized that a show cause notice must contain the grounds or premises on which action is sought to be taken and must provide a reasonable opportunity to respond.
