GST Department To Re-Inspect Changed Place Of Business Before GST Registration Cancellation: Delhi High Court

The Division Bench, comprising Justice Prathiba M. Singh and Justice Shail Jain stated that the officials of the GST Department ought to have re-inspected the new premises for Show Cause Notice proceedings to continue. It was also noted that present petition was limited to retrospective cancellation of the GST registration. Thus, the High Court recorded submission of the Central Goods and Services Tax Department, Delhi that addresses were changed multiple times and hence it was possible that Show Cause Notice was issued at the wrong address.

The GST registration of taxpayer came to be cancelled on the ground that taxpayer was not found at the place of business. Taxpayer submitted that a modification application dated August 30, 2024 was filed by the taxpayer for amendment of the address of its place of business, which was allowed vide order of amendment dated October 09, 2024. Meanwhile, a Show Cause Notice was issued to the taxpayer on September 13, 2024, followed by an order dated September 27, 2024 cancelling registration retrospectively.

In so far as retrospective cancellation of registration, the High Court clarified that

“The Petitioner's place of business which was amended ought to have been taken into consideration by the Adjudicating Authority before passing of the impugned order.”

As for allegations of availment of fraudulent Input Tax Credit, the Central Goods and Services Tax Department, Delhi contended that a fraudulent availment of ITC investigation ongoing by the GST Department in Jammu and Kashmir against the related entities including the taxpayer i.e. Parshavnath Industries. while instructing it to co-operate with the availment of fraudulent Input Tax Credit (ITC) investigation. In this vein, the High Court instructed that “the Petitioner shall co-operate in the investigation with all the Departments and action”

Accordingly, taxpayer was permitted to file a reply to the show cause notice along with an opportunity of hearing.

Case Name: Sakshi Goyal Proprietor of MIS Parshavnath Industries vs. Principal Commissioner CGST

Citation: 2025 LiveLaw (Del) 1558

Case No.: W.P.(C) 15169/2025

Date of Decision: 17.11.2025

Appearance: Advocates R.S. Yadav and Mr. Vishal Kashyap,appeared on behalf of the assessee, whereas Revenue was represented by SSC Akarsh Srivastava and Advocate Sumit K Batra.