Facts of the Case

DNC Infrastructure Private Limited challenged the cancellation of its GST registration by an order dated 13.09.2024, cancelling it with effect from an inspection dated 23.08.2024, on the ground that it was not conducting business from its declared place of business, and had issued invoices/bills without actual supply of goods or services, in violation of Rule 21(a) and (b) of the CGST Rules, 2017. The petitioner's case was that it had shifted its business to co-working spaces in Vizag and Vijayawada under agreements dated 19.10.2023 and 01.08.2024, but could not intimate this change earlier because its ongoing assessment proceedings required the file to remain with the original authority. The department's inquiry revealed the original landlord confirmed the petitioner never occupied the declared premises and the property had since changed hands.

Issues Involved

  1. Whether the petitioner was afforded an opportunity of personal hearing as mandated under Section 29 of the CGST Act before cancellation of its registration.
  2. Whether the petitioner's failure to intimate a change of principal place of business within the time prescribed justified cancellation under Rule 21.

Petitioner's Arguments

  • The order dated 13.09.2024 suffered from violation of natural justice as no personal hearing was afforded under Section 29 of the CGST Act.
  • It could not intimate the change of address because the pending assessment proceedings prevented the file from being transferred to another jurisdiction.

Respondent's Arguments

  • A personal hearing was in fact fixed for 04.09.2024, and the petitioner's authorised representative appeared on that date and handed over detailed written submissions dated 03.09.2024 without seeking any adjournment.
  • The petitioner had not intimated the change of address within the statutory 15-day period despite shifting offices as early as October 2023.

Court Order / Findings

  • The Court found the petitioner produced no material to show it made any attempt since October 2023 to inform the authorities of the change of address, and rejected the plea that pending assessment proceedings prevented such intimation.
  • On the personal hearing issue, the Court held that since a notice for hearing was given and the representative appeared and handed over written submissions without seeking adjournment, it could not be said that no opportunity of personal hearing was given.
  • The petitioner's own reply, which stated 'we request a personal hearing to present further details, if necessary', was interpreted as a conditional request, not a clear request for a further date, and the authority evidently found no further clarification necessary before passing the order.
  • Finding no reason to interfere, the Court dismissed the writ petition upholding the cancellation order dated 13.09.2024.

Important Clarification

  • Where an assessee's representative attends a fixed personal hearing and submits written submissions without seeking any adjournment, courts are unlikely to accept a subsequent claim of denial of personal hearing.
  • A conditional request in a reply ('hearing if necessary') is not equivalent to an unconditional request for a further date, and its absence of a follow-up cannot later be used to allege breach of Section 29.

Sections Involved

  • Section 29, CGST Act, 2017 — cancellation of registration, requiring opportunity of hearing before adverse orders.
  • Rule 21(a)/(b), CGST Rules, 2017 — grounds for cancellation including not conducting business from the declared place and issuing invoices without supply.

Decision – In Favour of

The writ petition was dismissed on merits, in favour of the Department, upholding the cancellation of GST registration.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 23025/2024
Coram: Hon'ble Sri Justice R. Raghunandan Rao and Hon'ble Sri Justice T.C.D. Sekhar
Date of Order: 08.10.2025

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