Nutech Roofings Vs Commissioner of CGST (Delhi High Court)
Delhi High Court Quashes GST Penalty as Registration Cancellation Was Already Revoked; GST Penalty Order Set Aside Because Business Was Allowed to Operate Beyond Registered Premises; Delhi High Court Cancels GST Penalties After Finding Show Cause Basis Factually Incorrect; GST Order Quashed as Revocation of Registration Undermined Department’s Allegations; Delhi High Court Holds GST Penalty Cannot Rest on Mere Conjectures About Business Location.
In Nutech Roofings Vs Commissioner of CGST, the Delhi High Court examined the validity of an Order-in-Original dated 19th December 2025 imposing penalties of Rs. 2,42,97,395/- under Section 122(1)(vii) of the CGST Act and Rs. 2,30,69,375/- under Section 122(1)(ii) of the CGST Act. The petitioner contended that the order was based on a Show Cause Notice dated 19th June 2025, which had been replied to on 30th June 2025. Prior to this, another Show Cause Notice for cancellation of registration had been issued on 7th October 2024, suspending the petitioner’s registration from the same date.
The petitioner submitted that although the registration had been suspended, the request for revocation of cancellation was accepted on 3rd October 2025. According to the petitioner, once the registration stood restored, the basis of the Show Cause Notice and the Order-in-Original ceased to survive. It was argued that the authorities were required to properly verify the operation of the principal place of business reflected in the registration certificate.
