2026 (5) TMI 148

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....(Annexure P-3) through which the petitioner's GST registration has been retrospectively cancelled. 2. Learned counsel for the petitioner submits that the show cause notice dated 10.03.2026 (Annexure P-1) is vague as it contains no reasons whatsoever on the basis whereof the respondents intended to cancel the petitioner's GST registration and that though in the said show cause notice there is reference to supportive documents but factually no supportive documents were appended therewith. 3. Learned counsel for the petitioner further submits that the order dated 02.04.2026 (Annexure P-3) through which the petitioner's GST registration has been cancelled, suffers from the following legal infirmities:- (i) The notice ....

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....istration Whereas on the basis of information which be cancelled for the following reasons: which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons: 1. Rule 21(b)-person issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder 2. Rule 21(e)-person avails ITC in violation of the provisions of Section 16 of the Act or the rules made thereunder Remarks: The Noticee has self-generated the huge amount of ITC and availed the same in their GSTR 3B returns. They have also availed ineligible ITC who are already cancelled suo-moto by the department and passed on there....

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.... be cancelled for following reason(s): 1. Rule 21(b)-person issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder 2. Rule 21(e)-person avails ITC in violation of the provisions of Section 16 of the Act or the rules made thereunder Remarks: The reply filed by the applicant is not satisfactory as they seems to have availed and passed on huge ineligible ITC as most of the suppliers registration is cancelled suo-moto by the department. Also the personal hearing opportunity has already been granted to the party but no one appeared on the given date. Therefore, the registration is cancelled retrospectively. Th....

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....ld that the impugned show cause notice and the order cancelling the petitioner's GST registration are both unsustainable in law being in violation of the principles of natural justice. 9. The afore view of ours is supported by a recent decision of a Division Bench judgment of this Court dated 20.02.2026 in CWP-16770-2024 - M/s Bansal Casting vs. Union of India and another, the relevant portion of which judgment reads 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 retrospective cancellation of registration is definitely conferred, it is apparent....