IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Sr. No.160 CWP-11910-2026 Date of decision: 21.04.2026 Dwarkadhish Metals ....Petitioner Versus Union of India and others ....Respondents CORAM: HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present: Mr. Chetan Jain, Advocate and Mr. Porush Jain, Advocate for the petitioner.

Ms. Pridhi Sandhu, Sr. Standing Counsel (through VC)

for the respondents.

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DEEPAK SIBAL, J. (Oral)

1. Through this petition a challenge is made to the show cause notice dated 10.03.2026 (Annexure P-1) putting the petitioner to notice as to why its GST registration be not cancelled. Also under challenge is the order dated 02.04.2026 (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 is vague;

(ii) The notice does not even refer to the defence taken by the petitioner through its written response submitted to the show cause notice which preceded the impugned order and (iii) through the order dated 02.04.2026 the petitioner's GST registration has been retrospectively cancelled with effect from 24.09.2020 but the show cause notice which preceded this order did not make any reference to such intention on the part of the respondent – Department.

4. Learned counsel for the respondent fairly concedes that to the show cause notice dated 10.03.2026 no supportive document was attached and that the petitioner's GST registration has been retrospectively cancelled without serving upon the petitioner a specific show cause notice in this regard.

5. Learned counsel for the parties have been heard and with their able assistance the record of the case has also been perused.

6. The impugned show cause notice dated 10.03.2026 (Annexure P- 1) and the impugned order retrospectively cancelling the petitioner's GST registration dated 02.04.2026 (Annexure P-3) are both reproduced below for ready reference:-

Show Cause Notice for Cancellation of Registration “Reference No.ZA0303260125714 To Registration Number (GSTIN/UIN): 03AMDPP9448C2Z3 Sat Parkash Kumar B-15-971/185/1,194-B Industrial Estate, Dholewal, Ludhiana Ludhiana Punjab, 141003 Show Cause Notice for Cancellation of Registration 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 thereto. You are hereby directed to explain as to why your registration should not be cancelled retrospectively.

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

You are hereby directed to appeal before the undersigned authority on 17.03.2026 at 11.30.

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of a