The HC held that retrospective cancellation of GST registration without a specific prior notice violates principles of natural justice and cannot be sustained in law.
Saloni Kumari | May 20, 2026 |
GST Registration Cannot Be Cancelled Retrospectively Without Due Notice, Says HC
The Punjab and Haryana High Court recently set aside an order cancelling the GST registration of Goyal Brothers with retrospective effect, holding that the company was not served any proper notice informing it about the same proposal, which is a clear breach of principles of natural justice.
During the personal hearing before the court, the petitioner (Goyal Brothers) argued that it had not been issued any proper notice before its GST registration was cancelled retrospectively through an order dated June 15, 2025.
The judgement reads, “So far as the challenge to the order dated 15.06.2025 (Annexure P-3), through which the petitioner’s GST registration has been retrospectively cancelled is concerned, it is found that prior to such retrospective cancellation, no specific notice in this regard was served upon the petitioner because in the notice, which preceded the order dated 15.06.2025, the petitioner was not put to notice that the respondent sought to retrospectively cancel the petitioner’s GST registration.”
When the court analysed the facts of the case, it noted that the tax authorities had indeed failed to issue a specific notice informing the petitioner about the proposal of its GST registration cancellation with retrospective effect. The judges noted that principles of natural justice require authorities to clearly inform taxpayers about the action intended against them and the reasons for such action.
To announce the final decision in the present case, the court cited an earlier judgement in a case titled ‘M/s Bansal Casting vs Union of India’, based on the same issue, where it was clarified that the tax authorities cannot retrospectively cancel GST registration under Section 29 of the CGST Act without a prior issuance of a proper notice.
Considering the aforementioned findings, the High Court quashed the impugned order dated June 15, 2025. However, tax authorities are allowed to initiate fresh proceedings in the present case in accordance with the law.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
