Allowed¶37

Rajesh Kumar Jain v. Union of India and Others

Punjab & Haryana HC10 Apr 2026CWP/10509/2026

Case brief

AI extract

What is this about?

GST registration cancellation; show cause notice without factual details; no supportive documents attached; Rule 21(b); Rule 21(e); Rule 21(g); Rule 86B of the CGST Act, 2017; ineligible ITC; section 16; suppliers cancelled suo moto; retrospective cancellation; suspension of GST registration from 13/03/2026; violation of principles of natural justice; notice set aside; liberty to proceed afresh in accordance with law; CWP-10509-2026; High Court of Punjab & Haryana at Chandigarh; decision date 10.04.2026.

What did the court decide?

Petition allowed; impugned show cause notice dated 13.03.2026 set aside, with liberty to the respondents to proceed against the petitioner for cancellation of his GST registration in accordance with law. ¶37

Rajesh Kumar Jain Vs Union of India and Others — GST and Indirect Tax | Punjab & Haryana HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the show cause notice dated 13.03.2026 proposing cancellation of the petitioner's GST registration, which contains no factual details and no attached supportive documents, is valid or violates the principles of natural justice.

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Court's answer

The impugned show cause notice dated 13.03.2026 does not contain any details on the basis whereof the petitioner's GST registration is sought to be cancelled; except reference to certain provisions of law, no facts are found mentioned therein, and although it states that supportive documents are attached, admittedly no document was attached.

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Ratio / Principle

The impugned show cause notice violates the principles of natural justice and does not serve the object behind its issuance; therefore, the impugned show cause notice dated 13.03.2026 is set aside.

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Key takeaways

Liberty is granted to the respondents to proceed against the petitioner for cancellation of his GST registration in accordance with law.ratio¶36

Detailed headnote1 paragraphs

Punjab & Haryana High Court, CWP-10509-2026, decided 10.04.2026 (oral judgment of Deepak Sibal, J.; bench included Lapita Banerji, J.) — Petitioner challenged show cause notice dated 13.03.2026 served for cancellation of his GST registration, citing Rule 21(b), Rule 21(e) and Rule 21(g) grounds: availing and passing on of ineligible ITC from suppliers whose registrations had been cancelled suo moto by the department, and violation of Rule 86B of the CGST Act, 2017; retrospective cancellation was proposed and registration stood suspended from 13/03/2026. Held: the notice contained no details or facts supporting cancellation — only references to provisions of law — and, though it recited that supportive documents were attached, admittedly no document was attached; the notice therefore violated the principles of natural justice and did not serve the object behind its issuance. The show cause notice dated 13.03.2026 was set aside, with liberty to the respondents to proceed against the petitioner for cancellation of his GST registration in accordance with law. Petition allowed.

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IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

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Sr. No. 173 CWP-10509-2026

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Date of decision : 10.04.2026

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Rajesh Kumar Jain .…. Petitioner

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Versus

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Union of India and others ..... Respondents

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CORAM : HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI

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Present : Mr. Gurkiran Singh, Advocate, for the petitioner.

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Mr. Ajay Kalra, Senior Standing Counsel-UOI.

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DEEPAK SIBAL, J . (Oral)

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Through this petition, the petitioner challenges show cause notice dated 13.03.2026, served upon the petitioner for cancellation of his GST registration.

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

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The impugned show cause notice dated 13.03.2026 is reproduced

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below for ready reference:-

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“Reference No.: ZA030326020879I Date: 13/03/2026 To

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Registration Number (GSTIN/UIN): 03AATPJ2196D1ZQ RAJESH KUMAR JAIN

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515, INDUSTRIAL AREA-B, MILLER GANJ, Ludhiana, PUNJAB, 141003

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Show Cause Notice for Cancellation of Registration

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Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

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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

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2. Rule 21(e)-person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder

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3. Rule 21(g)-person violates the provision of rule 86B

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Remarks:

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The noticee has availed and passed on ineligible ITC as the suppliers from whom they have availed ITC are already cancelled Suo-Moto by the department. You have also violated the provisions of Rule 86B of the CGST

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SHAMSHER SINGH 2026.04.19 10:21 I attest to the accuracy and integrity of this document Punjab and haryana high court, chandigarh

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[ 2 ]

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CWP-10509-2026

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Act, 2017. You are hereby directed to explain as to why your registration should not be cancelled retrospectively.

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

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You are hereby directed to appear before the undersigned authority on 19/03/2026 at 11:30.

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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 available records and on merits.

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Please note that your registration stands suspended with effect from 13/03/2026 .

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Kindly refer the supportive document attached for case specific details.”

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A perusal of the impugned show cause notice reveals that the same does not contain any details on the basis whereof the petitioner’s GST registration is sought to be cancelled. Except reference to certain provisions of law, no facts are found mentioned therein. Though it finds mentioned therein that supportive documents are attached but admittedly, no document was attached to the afore quoted show cause notice.

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In the light of the above, we find that the impugned show cause notice violates the principles of natural justice and does not serve the object behind its issuance. Therefore, the impugned show cause notice dated 13.03.2026 is set aside. However, liberty is granted to the respondents to proceed against the petitioner for cancellation of his GST registration, in accordance with law.

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The petition is allowed in the above terms.

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[DEEPAK SIBAL] JUDGE

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10.04.2026 [LAPITA BANERJI] shamsher JUDGE Whether speaking/reasoned : Yes / No Whether reportable : Yes / No

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SHAMSHER SINGH 2026.04.19 10:21 I attest to the accuracy and integrity of this document Punjab and haryana high court, chandigarh

Rajesh Kumar Jain v. Union of India and Others

Case brief

What is this about?

What did the court decide?

Rajesh Kumar Jain v. Union of India and Others

Case brief

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