GST Registration Restoration Dependent on Verification of New Business Premises and Documents: Delhi HC Directs Fresh Inspection [Read Order]

The petitioner, Sakshi Trading Company, a sole proprietorship of Subhash Kumar Aggarwal, had filed a petition challenging the Appellate Authority’s order, which dismissed its plea for restoration of GST registration. The firm was originally registered under GST No. 07AKFPA5975M1ZS for its business premises at 3565-A-8, Jain Mandir Dharmpura, Gandhi Nagar, East Delhi.

A Show Cause Notice (SCN) was issued to the petitioner, alleging that the company was not found functioning at the registered address and was non-traceable.

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The petitioner contended that it had shifted its business to a new premises at 2109/Shop No.7, Chah Indras, Bhagirath Palace, Chandni Chowk, Delhi, and had entered into a new rent agreement. However, before the address change could be reflected in the GST records, the registration was cancelled on April 9, 2024, with effect from April 22, 2021.

The Appellate Authority recorded that the petitioner failed to produce a complete rent agreement, Aadhaar and PAN details of witnesses, or other documents such as ownership proof, NOC from the landlord, or geotagged photos of the new premises. The appeal was accordingly dismissed.

The Appellate Authority also noted that no application for amendment of the registered address had been filed as mandated under Section 28 of the Central Goods and Services Tax (CGST) Act, 2017 read with Rule 19 of the CGST Rules, 2017. Hence, a mere submission of facts without supporting evidence could not be accepted at face value.

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The Bench, comprising Justice Prathiba M. Singh and Justice Shail Jain, directed a fresh inspection of the premises by the concerned authorities, taking note of the petitioner’s submission that it now possessed all relevant documents and could establish its existence at the new premises.

The High Court also ordered that within one month of such inspection, a decision be taken regarding restoration of the petitioner’s GST registration based on the verification results.

The petition was disposed of, making the restoration of GST registration dependent upon verification of the new business premises and supporting documents.

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The assessee was represented by Harsh Chachra, while Piyush Beriwal along with Jyotsna Vyas and Ruchita Srivastava appeared for the department.

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