Delhi High Court Orders Re-inspection in GST Registration Cancellation Case

Court directs fresh inspection of premises and personal hearing for Sakshi Goyal in retrospective GST registration cancellation dispute

In a significant legal development, the Delhi High Court has issued directions for the re-inspection of premises and a personal hearing in the case concerning the retrospective cancellation of GST registration of Sakshi Goyal, proprietor of M/s Parshavnath Industries. The division bench comprising Justices Prathiba M. Singh and Shail Jain addressed the procedural lapses by the GST authorities regarding the amendment of the petitioner’s business address.

The petitioner challenged the cancellation of her GST registration, asserting that the adjudicating authority failed to consider the approved amendment to her business address made on October 9, 2024, prior to the issuance of the impugned cancellation order dated September 27, 2024. The court noted that a Show Cause Notice was issued on September 13, 2024, at an outdated address, which could have led to procedural errors.

During the proceedings, the respondent’s counsel, Mr. Akash Verma, informed the court of ongoing investigations into alleged fraudulent availment of Input Tax Credit (ITC) by related entities across different regions, including Jammu and Kashmir and Indore. Despite these investigations, the court emphasized the need for adherence to lawful procedures regarding the cancellation of GST registration.

The court directed the GST Department to conduct a re-inspection of the petitioner’s newly amended business premises and obtain a physical inspection report. The petitioner has been granted permission to submit a reply to the Show Cause Notice by December 15, 2025, and will be given a personal hearing to ensure that her case is adjudicated in accordance with law.

Furthermore, the court mandated the petitioner’s cooperation in ongoing ITC investigations, ensuring that any actions taken by the authorities are compliant with legal requirements. With these directives, the court disposed of the petition, emphasizing the importance of procedural fairness and accuracy in administrative processes.

Bottom Line:

GST registration cancellation - Retrospective cancellation of GST registration - Adjudicating authority failed to consider the amended address of the Petitioner's place of business - Directions issued for re-inspection of new premises and adjudication of Show Cause Notice in accordance with law.

Statutory provision(s): Goods and Services Tax Act, 2017

Sakshi Goyal Proprietor of Mis Parshavnath Industries v. Principal Commissioner Central GST Delhi, (Delhi)(DB) : Law Finder Doc Id # 2811295