Sonu Steel Enterprises v. State of Punjab & Others

The petitioner, Sonu Steel Enterprises, challenged the order dated 10.08.2021, whereby its GST registration was retrospectively cancelled by the GST authorities. The petitioner also challenged the appellate order dated 06.03.2026, through which the statutory appeal against the cancellation order was dismissed.

The principal grievance of the petitioner was that the respondents had retrospectively cancelled its GST registration without issuing any Show Cause Notice informing the petitioner that retrospective cancellation was proposed. Although Section 29 of the CGST Act empowers the authorities to cancel registration retrospectively, such drastic action can only be taken after complying with the principles of natural justice.