Punjab & Haryana High Court strikes down retrospective cancellation of GST registration where show cause notice did not propose such action.
No Retrospective Cancellation Without SCN Notice
The Punjab & Haryana High Court quashed a retrospective cancellation of GST registration because the show cause notice (SCN) did not indicate that such a relief would be sought. The Court held that retrospective cancellation imposes serious civil consequences and cannot be imposed without prior intimation.
Justice Arun Monga ruled that the principles of audi alteram partem require that taxpayers be clearly informed of the nature and extent of proposed adverse action. Since the SCN only addressed prospective cancellation, the authority acted beyond its jurisdiction in canceling registration with retrospective effect.
This judgment reinforces procedural fairness in administrative decision-making under GST law. Assessing officers must align final orders strictly with the scope of the SCN. Practitioners should challenge any retrospective action unsupported by prior notice.
