Rajat Bansal v. Commissioner of Central Goods & Services Tax (CGST)
In favour of the assessee; matter remanded
The ruling in brief
Rajat Bansal challenged before the Himachal Pradesh High Court (8 July 2026, CWP No. 11068 of 2025) retrospective cancellation of GST registration from 15 March 2022 by an order dated 17 January 2025, without recording reasons for retrospectivity in either the show-cause notice or the cancellation order. Departmental material indicated that no functioning unit existed at the declared premises for part of the period, but the petitioner contended that backdating still required explicit proposal and reasoning. Under Section 29 and Rules 21 and 22, retrospective effective dates require reasoned adoption and cannot be slipped into the final order silently. The Court set aside the retrospective portion and remanded the matter for a fresh reasoned decision on the appropriate effective date of cancellation; actions taken after 17 January 2025 were left intact. Outcome: assessee-favourable remand. Not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.29 — Cancellation or suspension of GST registration.
- CGST Rules R.21 — Suspension of registration pending cancellation enquiry.
- CGST Rules R.22 — Cancellation of registration procedure.
Source documents
Similar rulings
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