High Court Allows Opportunity to Restore GST Registration Cancelled Over Non-Traceable Address of Business

The Delhi High Court has recently given relief to a company whose GST registration was cancelled based on the GST department’s claim that the company was not operating from its address and that the firm was not traceable.

The petitioner, Sakshi Trading Company, filed an appeal because its GST registration was cancelled. The GST department said in the show cause notice that the company was not operating from its registered address, and the firm was non-traceable, so the department cancelled the registration vide order of cancellation of registration dated April 9, 2024.

As per the company, it had shifted its address and had entered into a new agreement with the landlord at the new premises. However, by then, it was too late to file the application for amendment of the new address on the GST portal because the registration had already been cancelled. The company also filed an appeal before the Appellate Authority, which rejected it, as the company did not submit sufficient documents, including the Aadhaar Card, PAN Card and rent agreement.

The company submitted that the new address can be verified, and if the investigation is carried out once again, the petitioner would submit all the relevant documents to the department to confirm the company’s existence.

The High Court observed that now the petitioner has all the documents. The court did not restore the GST registration but gave the company another chance. The court ordered the GST officers to conduct a fresh inspection at the new address. Based on that inspection, they must decide within one month about the restoration of the GST Registration.