Case Reference
M/s Alfa Enterprises v. The Principal Commissioner & Anr.
Delhi High Court
W.P.(C) 8149/2025 & CM Appl. 35645–47/2025
Category: GST Registration – Cancellation proceedings
Date of Judgment: 30.05.2025
Relevant Sections: Section 29(2)(e) of the CGST Act, 2017 (cancellation of registration for non-functioning business), Articles 226 & 227 of the Constitution of India
Facts (Paras 3–5)
The petitioner, M/s Alfa Enterprises, received a Show Cause Notice (SCN) dated 23.01.2025 from the CGST Department proposing cancellation of its GST registration on the ground that the firm was found non-functional during investigation. The petitioner submitted a reply on 03.02.2025 but no decision was taken by the department. The petitioner requested that a fresh inspection of its premises be undertaken, relying upon the precedent of M/s V S Enterprises v. Commissioner DGST where the Delhi High Court had ordered re-inspection.
Questions Before the Court (Paras 3, 5, 7)
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Whether the SCN for cancellation of GST registration ought to be quashed at the threshold?
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Whether the petitioner could insist upon a re-inspection of its business premises?
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Whether the petitioner was entitled to a personal hearing and time-bound disposal of the SCN proceedings?
Court’s Observations (Paras 6–9)
The Court noted that while a request for re-inspection could be made, the adjudicating authority was the proper forum to consider such a request. Hence, quashing of the SCN at this stage was unwarranted. However, the Court recognized that since the petitioner’s firm had come to a standstill due to suspension of GST registration, principles of natural justice required that the petitioner be given a personal hearing. It directed the department to issue notice of hearing to the petitioner on the email and phone provided, and to conclude the proceedings within three months.
Judgement (Paras 6–10)
The Delhi High Court refused to quash the SCN but directed the department to:
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Grant the petitioner a personal hearing,
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Allow the petitioner to make its submissions (including request for re-inspection) before the adjudicating authority,
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Conclude the cancellation proceedings within three months.
Accordingly, the writ petition was disposed of.
Table of Cases Referred
| Case | Citation | Verdict |
|---|---|---|
| M/s V S Enterprises v. Commissioner DGST & Anr. | W.P.(C) 7019/2025 (Delhi HC) | Directed re-inspection of premises before deciding cancellation of GST registration. |
Between Fine Lines (Trade Takeaway)
For businesses facing GST registration cancellation, High Courts may not quash show cause notices outright but will ensure that principles of natural justice are upheld. Firms must actively respond, request personal hearings, and place all relevant evidence before the adjudicating authority. Timely conclusion of proceedings is also being insisted upon by courts, which gives trade stakeholders certainty in compliance and business continuity.
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