Fabricated SCN in GST Cancellation Case – Order Recalled

Case Title: M/s Royal Enterprises v. Principal Commissioner of Goods and Service Tax, East Delhi
Court: High Court of Delhi
Petition Number: W.P.(C) 2461/2025 & CM Appl. 22018/2025
Date of Judgment: 17.04.2025
Coram: Justice Prathiba M. Singh & Justice Rajneesh Kumar Gupta
Relevant Sections: Section 29(2) CGST Act, 2017; Section 379 & Section 215(1)(b), BNSS, 2023
Category of Dispute: Cancellation of GST Registration – Fabricated SCN

Facts of the Case (Paras 3–7, 8–10)

• The petitioner challenged the Show Cause Notice (SCN) dated 27.09.2024 and the order dated 22.10.2024 cancelling its GST registration with retrospective effect from 25.11.2021.

• The Court initially allowed the writ (27.02.2025) holding that retrospective cancellation without reasons was invalid (Para 7).

• Later, the Department discovered that the SCN annexed in the petition (“Annexure P-1”) was fabricated, with crucial portions containing reasons deleted (Para 8).

• Counsel for petitioner admitted the SCN filed by his client was fabricated, though he claimed lack of knowledge (Para 9).

• Department further pointed out that three other writ petitions (M/s Trix India Sales Corporation, S R Enterprises, Compact Enterprises) had similar fabrications, all filed through the same counsel (Para 10).

Questions in Consideration (Paras 7–12)

1. Whether the GST registration could be cancelled retrospectively without proper reasons in the SCN?

2. Whether fabrication of SCN annexed in the writ petition misled the Court into granting relief?

3. Whether the earlier order dated 27.02.2025 should be recalled?

Observations of Court (Paras 7–12)

• The original order (27.02.2025) was based on a defective SCN filed in Court, which was later revealed to be fabricated (Para 8).

• The Court noted this is a serious matter of fabrication of judicial records, which requires strict scrutiny (Paras 8–10).

• The Court emphasized that presenting a falsified SCN undermines the judicial process and misleads the Court (Para 9).

Judgment of the Court (Para 12)

• The final order dated 27.02.2025 was recalled (Para 12.i).

• Any action based on the recalled order was directed not to be given effect (Para 12.i).

• The proprietor of the petitioner, Mr. Sahib Alam, was directed to be personally present in Court on the next date (Para 12.ii).

• The Registry was directed to list the present case along with three connected writs involving fabricated SCNs (Para 12.iii).

• Counsel was directed to inform petitioners of other cases to remain present (Para 12.iv).

• Next date fixed: 29.04.2025.

Between Fine Lines (Simplified Outcome in 5 Points)

• Petitioner annexed a fabricated SCN to challenge GST cancellation.

• Court had earlier allowed the writ due to absence of reasons in SCN.

• Department later exposed the fabrication, admitting real SCN contained reasons.

• Court recalled its earlier order and summoned the petitioner.

• Similar cases of fabrication flagged in three more petitions.

Summary of Referred Cases

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