The Punjab and Haryana High Court set aside an order cancelling the GST registration of Goyal Brothers with retrospective effect, holding that the company was not given any proper notice of the same proposal, which is a violation of principles of natural justice.
The applicant (Goyal Brothers), during the personal hearing before the Court, claimed that it had not been issued any proper notice before its GST registration was cancelled retrospectively via 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 before 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 examined the facts of the case, it observed that the tax authorities had indeed failed to issue a specific notice informing the petitioner of the proposal to cancel its GST registration with retrospective effect.
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The Judges observed that principles of natural justice mandate that authorities notify taxpayers of the action intended against them and the reasons for it.
To declare the final decision in the current matter, the Court mentioned an earlier judgement in a case titled ‘M/s Bansal Casting vs Union of India’, grounded on the same issue, where it was mentioned that the tax authorities cannot retrospectively cancel GST registration under section 29 of the CGST Act without a prior issuance of a proper notice.
The High Court, acknowledging the abovementioned findings, quashed the impugned order dated June 15, 2025. Although tax authorities are authorised to initiate fresh proceedings in the current case under the law.
| Case Title | Goyal Brothers Vs Commissioner, CGST |
| Case No. | Cwp-12886-2026 |
| Counsel For Petitioner | Mr Mukul Singla, Mr Aman Bansal |
| Counsel For Respondent | Mr Naman Jain, Mr Saurabh Kapoor |
| Punjab and Haryana High Court | Read Order |
