Retrospective GST Cancellation: Delhi HC orders Re-inspection of Business Premises after Address Change [Read Order]
The High Court set aside the retrospective cancellation of GST registration as the authorities failed to consider the updated business address and directed fresh adjudication after re-inspection of the new premises
In the recent ruling, the Delhi High Court set aside a retrospective GST ( Goods and Services Tax ) registration cancellation issued to the petitioner at its old address despite an approved address change and held that authorities must consider the updated business premises before passing such orders.
The Court directed the taxpayer to reply to the SCN and mandated a fresh inspection of the new location.
The Petitioner, Sakshi Goyal, engaged in the manufacture of Ghee, was registered with the GST Department with GSTIN 07BHEPG8680C1ZE, challenged the retrospective cancellation of her GST registration dated 27th September, 2024 under Articles 226 and 227 of the Constitution of India.
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The Article 227 Of Constitution of India explained that: Power of superintendence over all courts by the High Court:
“(1) Every High Court shall have superintendence over all courts and tribunals throughout the territories interrelation to which it exercises jurisdiction
(2) Without prejudice to the generality of the foregoing provisions, the High Court may-
(a)call for returns from such courts;
(b) make and issue general rules and prescribe forms for regulating the practice and proceedings of such courts; and
(c)prescribe forms in which books, entries and accounts shall be kept by the officers of any such courts.”
The Petitioner submitted that she had filed an application for amendment of her business address on 30th August, 2024, which was subsequently approved on 9th October, 2024. Though, a Show Cause Notice (SCN) was issued on 13th September, 2024, and the impugned cancellation order was passed on 27th September, 2024, without considering the updated address.
“6. However, ld. Counsel for the Petitioner submits that a modification application dated 30th August, 2024 was filed by the Petitioner for amendment of the address of Petitioner’s place of business, which was allowed vide order of amendment dated 9th October, 2024.
7. In the interregnum itself, a Show Cause Notice was issued to the Petitioner on 13th September, 2024 and thereafter, the impugned order was passed on 27th September, 2024.
8. Let the documents filed with this writ petition be verified by the ld. SSC for the Respondents.”
The Counsel for the Respondent, Akash Verma, submitted that an Input Tax Credit (ITC) investigation was ongoing against related entities, namely M/s Beauty General Store, M/s Gaurav Sales Agency, and M/s Parshavnath Industries, by the CGST Division Jammu-I and Superintendent CGST, Indore.
The Counsel further highlighted that the Petitioner had changed the addresses for four occasions, hence, it is possible that the Show Cause Notice dated 13th September, 2024 was issued at the wrong address.
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The Two-Member Bench consisted of Justice Prathiba M. Singh and Justice Shail Jain, heard and reviewed the matter filed by the Petitioner.
The High Court observed that the Petitioner's amended place of business ought to have been considered by the Adjudicating Authority before passing the impugned order and directed a re-inspection of the new premises.
The amendment of the Petitioner’s address had been sought on 30th August, 2024 and was approved on 9th October, 2024. This place of business to be re-inspected by the concerned officials of the GST Department and proceedings in the Show Cause Notice would continue.
After considering the facts and submissions, the High Court issued certain directions:
Firstly, the Petitioner is permitted to file a reply to the Show Cause Notice dated 13th September, 2024, by 15th December, 2025; secondly, The GST Department to re-inspect the new premises of the Petitioner and obtain a physical inspection report.
Thirdly, The Petitioner shall be given a personal hearing and the Show Cause Notice dated 13th September, 2024 shall be adjudicated in accordance with law; fourthly, the Petitioner to cooperate with all departments in the ongoing investigation concerning allegations of fraudulent availment of ITC, and any action to be taken as per law.
Thus, the Petition was disposed of on 12th November, 2025.
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