CWP- 12072- IN THE HIGH COURT OF PUNJAB AND HARYANA AT Neelkanth Enterprises Union of India CORAM : HON’BLE MR. JUSTICE HON’BLE MS. JUSTICE LAPITA BANERJI Present : Mr. for the petitioner. Mr. Saurabh Kapoor, Additional A.G., Punjab DEEPAK SIBAL Through show cause notice dated 03.02.2026, the petitioner was put to notice as to why its GST registration be not cancelled to which the petitioner filed a written response along with supporting documents. Thereafter, thro registration has been cancelled which order has been challenged through the instant petition. 2. Learned counsel for the petitioner submits that the show cause notice dated 03.02.2026 the pet written response along with necessary evidence which has been rejected through the impugned adjudication order by simply stating therein that the petitioner’s reply to the show cause notice has been examined 3. Learned State counsel order by simply stating that the petitioner’s reply filed to the show cause notice was duly considered and -2026 (O&M) Sr. No.168 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP- 12072 Date of Decision : Neelkanth Enterprises Versus Union of India and another HON’BLE MR. JUSTICE DEEPAK SIBAL HON’BLE MS. JUSTICE LAPITA BANERJI Mr. Rishab Singla, Advocate, for the petitioner. Mr. Saurabh Kapoor, Additional A.G., Punjab *** DEEPAK SIBAL, J. (Oral) Through show cause notice dated 03.02.2026, the petitioner was put to notice as to why its GST registration be not cancelled to which the petitioner filed a written response along with supporting documents. Thereafter, through order dated 03.03.2026, the petitioner’s GST registration has been cancelled which order has been challenged through the instant petition. Learned counsel for the petitioner submits that the show cause notice dated 03.02.2026 the pet written response along with necessary evidence which has been rejected through the impugned adjudication order by simply stating therein that the petitioner’s reply to the show cause notice has been examined Learned State counsel defends order by simply stating that the petitioner’s reply filed to the show cause notice was duly considered and an opinion was formed by the P IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 12072-2026 (O&M) Date of Decision : 22.04.2026 …Petitioner …Respondents DEEPAK SIBAL HON’BLE MS. JUSTICE LAPITA BANERJI Mr. Saurabh Kapoor, Additional A.G., Punjab. Through show cause notice dated 03.02.2026, the petitioner was put to notice as to why its GST registration be not cancelled to which the petitioner filed a written response along with supporting documents. ugh order dated 03.03.2026, the petitioner’s GST registration has been cancelled which order has been challenged through the Learned counsel for the petitioner submits that in response to the show cause notice dated 03.02.2026 the petitioner had filed a detailed written response along with necessary evidence which has been rejected through the impugned adjudication order by simply stating therein that the petitioner’s reply to the show cause notice has been examined. the impugned adjudication order by simply stating that the petitioner’s reply filed to the show cause an opinion was formed by the Proper VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document CWP- 12072- Officer on the basis whereof the petitioner’s to be cancelled. 4. Learned counsel for the parties have been heard. 5. The s petitioner and the impugned reproduced hereinafter for ready refere Reference No.: ZA0302260035329 Date: 03/02/2026 To Registration Number (GSTIN/UIN): 03AAUFN9251C1Z6 NEELKANTH ENTERPRISES TEHSIL KHANNAH B NO 141401 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: 1. Rule 21(a) declared place of business/place of business not found 2. Rule 21(b) goods or services or both in violation of the provisions of the Act, or the rules made thereund 3. Rule 21(d) details) 4. Rule 21 (e) of section 16 of the Act or the rules made thereunder 5. Rule 21(g) Remarks: During physical verification of Principal place of Business, the taxpayer was found to be non on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended su availed ineligible ITC from these suspicious suppliers whose regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose regn. was cancelled suspicious activities of passing/receiving of fake/bogus ITC, is as under: (i) 07CHJPJ8476R1Z8 (cancelled w.e.f. 09.05.2025) (ii) 07AVJPK2380B1ZU (cancelled w.e.f. 14.01.2025) (ii) 07CGHPA6664F1ZG (cancelled (iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) etc. -2026 (O&M) fficer on the basis whereof the petitioner’s registratio to be cancelled. Learned counsel for the parties have been heard. The show cause notice dated 03.02.2026 issued to the petitioner and the impugned cancellation reproduced hereinafter for ready reference:- Show Cause Notice For Cancellation FORM GST REG-17 (See Rule 22(1)] Reference No.: ZA0302260035329 Date: 03/02/2026 To Registration Number (GSTIN/UIN): 03AAUFN9251C1Z6 NEELKANTH ENTERPRISES TEHSIL KHANNAH B NO 221, Alaur, Ludhiana, Punjab, 141401 Show Cause Notice for Cancellation of Registration 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: 1. Rule 21(a) - Person does not conduct any business from declared place of business/place of business not found 2. 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 3. Rule 21(d)-person violates the provision of rule 10A (Bank details) 4. Rule 21 (e)-person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder 5. Rule 21(g)-person violates the provision of rule 86B Remarks: During physical verification of Principal place of Business, the taxpayer was found to be non-traceable/non existent. Further, on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended suo-moto by the department. It appears that the Noticee had availed ineligible ITC from these suspicious suppliers whose regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose regn. was cancelled retrospectively due to their involvement in suspicious activities of passing/receiving of fake/bogus ITC, is as under: - (i) 07CHJPJ8476R1Z8 (cancelled w.e.f. 09.05.2025) (ii) 07AVJPK2380B1ZU (cancelled w.e.f. 14.01.2025) (ii) 07CGHPA6664F1ZG (cancelled (iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) etc. registration was rightly ordered Learned counsel for the parties have been heard. how cause notice dated 03.02.2026 issued to the order dated 03.03.2026 are Show Cause Notice For Cancellation Of Registration 17 (See Rule 22(1)] Reference No.: ZA0302260035329 Date: 03/02/2026 Registration Number (GSTIN/UIN): 03AAUFN9251C1Z6 221, Alaur, Ludhiana, Punjab, Show Cause Notice for Cancellation of Registration 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: Person does not conduct any business from declared place of business/place of business not found person issues invoice or bill without supply of goods or services or both in violation of the provisions of the er person violates the provision of rule 10A (Bank person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder person violates the provision of rule 86B During physical verification of Principal place of Business, the traceable/non existent. Further, on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended moto by the department. It appears that the Noticee had availed ineligible ITC from these suspicious suppliers whose regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose retrospectively due to their involvement in suspicious activities of passing/receiving of fake/bogus ITC, is (i) 07CHJPJ8476R1Z8 (cancelled w.e.f. 09.05.2025) (ii) 07AVJPK2380B1ZU (cancelled w.e.f. 14.01.2025) (ii) 07CGHPA6664F1ZG (cancelled w.e.f. 17.03.2025) (iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document CWP- 12072- In view of above facts, it appears that retrospective cancellation of registration is warranted: -To prevent misuse of Input Tax Credit (ITC) through fictitious invoicing, -To break -To nullify GSTINs obtained through misrepresentation, and -To safeguard government revenue from non non In view of above facts, it is requested to pay the above said amount alongwith applicable your regn. will be cancelled with retrospective effect. You are also requested to appear for Personal Hearing (PH) on the given date and time, along with documents e.g. tax paid challan in form of DRC documents in respect of establishing the existence of the unit at the registered premises etc. Failure to appear or provide the required documents may result in cancellation of GST registration with retrospective effect under Rule 22 of the C facts already available on record. 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 appear before the undersigned authority 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 decided ex parte on the basis of available records and on merits. Please note that your r from 02/09/2023. Kindly refer the supportive document attached for case specific details. Place: CBIC Date: 03/02/2026 Reference Number: ZA0303260033074 TO Name: NEELKANTH ENTERPRISES Address: TEHSIL KHANNAH B NO 221, Alaur, Ludhiana Punjab, 141401 GSTIN/UIN: 03AAUFN9251C126 Application Reference Number (ARN): AA030226002654R Date: 12/02/2026 Order for Cancellation of Registration -2026 (O&M) In view of above facts, it appears that retrospective cancellation of registration is warranted: To prevent misuse of Input Tax Credit (ITC) through fictitious invoicing, To break the fraudulent ITC chain, To nullify GSTINs obtained through misrepresentation, and To safeguard government revenue from non non-existent taxpayers. In view of above facts, it is requested to pay the above said amount alongwith applicable interest & penalty, failure which your regn. will be cancelled with retrospective effect. You are also requested to appear for Personal Hearing (PH) on the given date and time, along with documents e.g. tax paid challan in form of DRC-03 against above documents in respect of establishing the existence of the unit at the registered premises etc. Failure to appear or provide the required documents may result in cancellation of GST registration with retrospective effect under Rule 22 of the CGST Rules, 2017, based on the facts already available on record. 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 appear before the undersigned authority on 12/02/2026 at 11:50. 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 decided ex parte on the basis of available records and on merits. Please note that your registration stands suspended with effect from 02/09/2023. Kindly refer the supportive document attached for case specific details. Place: CBIC Date: 03/02/2026 Order for Cancellation of Registration FORM GST REG-19 [Se Reference Number: ZA0303260033074 TO Name: NEELKANTH ENTERPRISES Address: TEHSIL KHANNAH B NO 221, Alaur, Ludhiana Punjab, 141401 GSTIN/UIN: 03AAUFN9251C126 Application Reference Number (ARN): AA030226002654R Date: 12/02/2026 Order for Cancellation of Registration In view of above facts, it appears that retrospective cancellation of registration is warranted: To prevent misuse of Input Tax Credit (ITC) through fictitious the fraudulent ITC chain, To nullify GSTINs obtained through misrepresentation, and To safeguard government revenue from non-compliant and In view of above facts, it is requested to pay the above said interest & penalty, failure which your regn. will be cancelled with retrospective effect. You are also requested to appear for Personal Hearing (PH) on the given date and time, along with documents e.g. tax paid 03 against above said amount, documents in respect of establishing the existence of the unit at Failure to appear or provide the required documents may result in cancellation of GST registration with retrospective GST Rules, 2017, based on the facts already available on record. 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 appear before the undersigned on 12/02/2026 at 11:50. 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 decided ex parte on the basis of available records egistration stands suspended with effect Kindly refer the supportive document attached for case specific Manjit Kaur Superintendent RANGE-V” Order for Cancellation of Registration 19 [See rule 22(3)] Reference Number: ZA0303260033074 Date:03/03/2026 Name: NEELKANTH ENTERPRISES Address: TEHSIL KHANNAH B NO 221, Alaur, Ludhiana GSTIN/UIN: 03AAUFN9251C126 Application Reference Number (ARN): AA030226002654R Order for Cancellation of Registration VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document CWP- 12072- This has reference to show cause notice issued dated 03/02/2026. Whereas reply to the show cause notice has been submitted vide AA030226002654R dated 12/02/2026; and undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason(s): 1. Rule 21(a) declared place of business/place of business not found 2. Rule 21(b) goods or services or both in violation of the provisions of the Act, or the rules made thereunder 3. Rule 21(d) details) 4. Rule 21(e) of section 16 of the Act or the rules made thereunder 5. Rule 21(g) Remarks: During physical verif taxpayer was found to be non on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended suo avai regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose regn. was cancelled retrospectively due t suspicious activities of passing/receiving of fake/bogus ITC, is as under: (i (ii (i (iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) etc. In view of above facts, it appears that retrospective cancellation of registration is warranted: -To prevent misuse of Input Tax Credit (ITC) through fictitious invoicing, -To break the fraudulent ITC obtained through misrepresentation, and -To safeguard government revenue from non non -2026 (O&M) This has reference to show cause notice issued dated 03/02/2026. Whereas reply to the show cause notice has been submitted vide AA030226002654R dated 12/02/2026; and undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason(s): 1. Rule 21(a)- Person does not conduct an declared place of business/place of business not found 2. 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 3. Rule 21(d)-person violates the provision of rule 10A (Bank details) 4. Rule 21(e)-person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder 5. Rule 21(g)-person violates the provision of rule 868 Remarks: During physical verification of Principal place of Business, the taxpayer was found to be non-traceable/non existent. Further, on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended suo-moto by the department. It a availed ineligible ITC from these suspicious suppliers whose regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose regn. was cancelled retrospectively due t suspicious activities of passing/receiving of fake/bogus ITC, is as under: - (i) 07CHJPJ8476R1Z8 (cancelled w.e.f. 09.05.2025) (ii) 07AVJPK2380B1ZU (cancelled w.e.f. 14.01.2025) (iii) 07CGHPA6664F1ZG (cancelled w.e.f. 17.03.2025) iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) etc. In view of above facts, it appears that retrospective cancellation of registration is warranted: To prevent misuse of Input Tax Credit (ITC) through fictitious invoicing, To break the fraudulent ITC obtained through misrepresentation, and To safeguard government revenue from non non-existent taxpayers. Page 4 of 6 This has reference to show cause notice issued dated Whereas reply to the show cause notice has been submitted vide AA030226002654R dated 12/02/2026; and whereas, the undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for following Person does not conduct any business from declared place of business/place of business not found 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 violates the provision of rule 10A (Bank person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder person violates the provision of rule 868 ication of Principal place of Business, the traceable/non existent. Further, on verification of the record available at portal, major L1/L2 suppliers of the taxpayer were found to be cancelled/suspended nt. It appears that the Noticee had led ineligible ITC from these suspicious suppliers whose regn. had already been cancelled as on date and details of some of these cancelled major suppliers (as on date) whose regn. was cancelled retrospectively due to their involvement in suspicious activities of passing/receiving of fake/bogus ITC, is ) 07CHJPJ8476R1Z8 (cancelled w.e.f. 09.05.2025) ) 07AVJPK2380B1ZU (cancelled w.e.f. 14.01.2025) ) 07CGHPA6664F1ZG (cancelled w.e.f. 17.03.2025) iv) 07MZBPS3001D1ZM (cancelled w.e.f. 28.04.2025) In view of above facts, it appears that retrospective cancellation of registration is warranted: To prevent misuse of Input Tax Credit (ITC) through fictitious To break the fraudulent ITC chain, To nullify GSTINs obtained through misrepresentation, and To safeguard government revenue from non-compliant and VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document CWP- 12072- In view of above facts, it is requested to pay the above said amount alongwith ap your regn. will be cancelled with retrospective effect. 02/09/2023. 2. Kindly refer to the supportive document(s) attached for case specific details. 3. It may be under sub required to furnish a final return in FORM GSTR three months of the date of this order. 4. You are required to furnish all your pending 5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of whether or not such tax and other dues are determined before or after the date of cancellation Place: CBIC Date: 03/03/2026 6. A perusal of the afore impugned cancellation petitioner’s GST registration are merely a the show cause 7. A reveals that in the cancellation order the petitioner’s reply by stating therein that the same has been examined. 8. None of the grounds taken by the petitioner in its written response have even been touched. It impugned order that the petitioner’s written response satisfactory. -2026 (O&M) In view of above facts, it is requested to pay the above said amount alongwith applicable interest & penalty, your regn. will be cancelled with retrospective effect. The effective date of cancellation of your registration is 02/09/2023. 2. Kindly refer to the supportive document(s) attached for case specific details. - Not Applicable 3. It may be noted that a registered person furnishing return under sub-section (1) of section 39 of the CGST Act, 2017 is required to furnish a final return in FORM GSTR three months of the date of this order. 4. You are required to furnish all your pending 5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of whether or not such tax and other dues are determined before or after the date of cancellation. Place: CBIC Date: 03/03/2026 A perusal of the afore-quoted show cause notice and cancellation order clearly reveals that the reasons to cancel the itioner’s GST registration are merely a copy of the reasons contained in the show cause notice which preceded the impugned order. A perusal of the impugned order dated 03.03.2026 reveals that in the cancellation order the Proper Officer has s reply by stating therein that the same has been examined. None of the grounds taken by the petitioner in its written response have even been touched. It has also not been s impugned order that the petitioner’s written response In view of above facts, it is requested to pay the above said plicable interest & penalty, failure which your regn. will be cancelled with retrospective effect. The effective date of cancellation of your registration is 2. Kindly refer to the supportive document(s) attached for case noted that a registered person furnishing return section (1) of section 39 of the CGST Act, 2017 is required to furnish a final return in FORM GSTR-10 within three months of the date of this order. 4. You are required to furnish all your pending returns. 5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before Manjit Kaur Superintendent Range-V” quoted show cause notice and the order clearly reveals that the reasons to cancel the copy of the reasons contained in the impugned order. order dated 03.03.2026 further roper Officer has simply rejected s reply by stating therein that the same has been examined. None of the grounds taken by the petitioner in its written has also not been stated in the impugned order that the petitioner’s written response was found to be not VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document CWP- 12072- 9. In light of the above, the impugned 03.03.2026 is found to justice and without application of mind. Therefore, we have no hesitation to set aside the order dated 03.03.2026 (Annexure P respondents are at liberty to proceed against the petitioner accordance with law. 10. The prayer vires of Section 29(2) and Section 16(2) Services Tax Act, 2017 11. The petition is allowed in the above terms. April 22, 2026 vandana Whether speaking/reasoned : Whether reportable -2026 (O&M) In light of the above, the impugned 03.03.2026 is found to be in gross violation of the principles of natur justice and without application of mind. Therefore, we have no hesitation to set aside the order dated 03.03.2026 (Annexure P espondents are at liberty to proceed against the petitioner accordance with law. The prayer made in this petition with regard to vires of Section 29(2) and Section 16(2)(c) Services Tax Act, 2017 is kept open to be decided The petition is allowed in the above terms. (DEEPAK SIBAL JUDGE (LAPITA BANERJI) JUDGE , 2026 ther speaking/reasoned : Yes/No Whether reportable : Yes/No In light of the above, the impugned cancellation order dated be in gross violation of the principles of natural justice and without application of mind. Therefore, we have no hesitation to set aside the order dated 03.03.2026 (Annexure P-4). However, the espondents are at liberty to proceed against the petitioner afresh in made in this petition with regard to challenge of the (c) of the Central Goods and open to be decided in an appropriate case. The petition is allowed in the above terms. DEEPAK SIBAL) JUDGE (LAPITA BANERJI) JUDGE VANDANA 2026.05.01 09:39 I attest to the accuracy and integrity of this document