Delhi HC Order Physical Verification of Address before GST Cancellation Proceedings

The petitioner, a ghee manufacturer operating under the proprietorship M/s Parshavnath Industries, challenged a GST registration cancellation order dated 27 September 2024. Though registered in Delhi under GSTIN 07BHEPG8680C1ZE, her manufacturing unit is situated in Bulandshahr, Uttar Pradesh. She had applied on 30 August 2024 to amend her place-of-business address, and this amendment was approved on 9 October 2024. However, in the meantime, a Show Cause Notice (SCN) dated 13 September 2024 was issued and cancellation followed on 27 September 2024, before the updated address was formally recorded in the GST system.

Issue Before HC: Whether the retrospective cancellation of the petitioner’s GST registration was valid when the adjudicating authority failed to consider the petitioner’s approved change of address.

The Delhi High Court held that the amended place of business, approved on 9 October 2024, ought to have been considered before the cancellation order was issued. Since the SCN may have been served at an incorrect address and the cancellation was effected without verifying the updated business location, the Court directed that the proceedings under the SCN dated 13 September 2024 be revived. The petitioner was permitted to file a fresh reply by 15 December 2025.

The Court further directed the GST Department to re-inspect the petitioner’s newly amended premises and obtain a physical verification report. A personal hearing must be granted, and the SCN adjudicated strictly in accordance with law. Regarding ongoing ITC investigations involving related entities, the petitioner was directed to fully cooperate, with any action to proceed as per law. The writ petition was disposed of on these terms.

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