Facts of the Case

The petitioner, Sakshi Goyal, Proprietor of M/s Parshavnath Industries, is engaged in the manufacture of ghee and is registered under the GST regime bearing GSTIN 07BHEPG8680C1ZE. The manufacturing unit of the petitioner is situated at Kheda Sarai Chabila, Bulandshahr, Uttar Pradesh, while the registered address was subsequently amended to 6, Daya Lane, First Floor, Ram Kishore Road, Civil Lines, Delhi.

A Show Cause Notice dated 13th September, 2024 was issued proposing cancellation of the GST registration. Thereafter, an order dated 27th September, 2024 was passed retrospectively cancelling the GST registration of the petitioner. The petitioner contended that prior to passing of the impugned order, an application dated 30th August, 2024 had already been filed seeking amendment of the place of business, which was approved by the Department on 9th October, 2024. The amended address was not considered by the adjudicating authority while passing the impugned order.

Issues Involved

Whether retrospective cancellation of GST registration could be sustained without considering the amended address of the place of business, whether issuance of the show cause notice at an incorrect address vitiated the proceedings, and whether the matter required remand for fresh adjudication after physical verification of the amended premises.

Petitioner’s Arguments

The petitioner submitted that the show cause notice dated 13th September, 2024 was issued when the application for amendment of address was already pending and that the cancellation order was passed without considering the amended place of business. It was argued that the cancellation was arbitrary and violative of principles of natural justice. The petitioner further contended that she was willing to cooperate with any investigation relating to alleged fraudulent availment of input tax credit.

Respondent’s Arguments

The Revenue submitted that there were ongoing investigations by the GST authorities in Jammu and Kashmir and Indore concerning related entities and alleged fraudulent availment of input tax credit. It was also submitted that the petitioner had changed addresses multiple times, and therefore, it was possible that the show cause notice had been issued at an incorrect address.

Court Order / Findings

The Delhi High Court observed that the application for amendment of address filed by the petitioner on 30th August, 2024 had been approved on 9th October, 2024 and that the amended place of business ought to have been considered by the adjudicating authority prior to passing the order of cancellation. The Court held that retrospective cancellation without considering the amended address was not justified.

The Court directed that the amended premises be re-inspected by the GST authorities and that the proceedings pursuant to the show cause notice dated 13th September, 2024 be continued afresh after granting opportunity to the petitioner to file a reply and to be heard.

Important Clarification

The High Court clarified that while the retrospective cancellation order was set aside, the petitioner was required to fully cooperate with ongoing investigations relating to alleged fraudulent availment of input tax credit and that appropriate action, if any, could be taken in accordance with law.

Final Outcome

The writ petition was disposed of. The petitioner was permitted to file a reply to the show cause notice dated 13th September, 2024 by 15th December, 2025. The GST Department was directed to re-inspect the amended premises of the petitioner, grant personal hearing, and adjudicate the show cause notice afresh in accordance with law. All pending applications were disposed of accordingly.

SOURCE LINK: https://delhihighcourt.nic.in/app/showFileJudgment/75412112025CW163332025_125309.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.